Business

Crypto Hedge Fund Headquartered in BVI Ordered by Court to Liquidate

Three Arrows Capital Limited, recently relocated from Singapore to the British Virgin Islands, was recently ordered by the Commercial Division of the Eastern Caribbean Supreme Court to liquidate, after creditors sued the cryptocurrency hedge fund for failure to repay its debts. A firm called Teneo has reportedly been appointed by the court to handle the insolvency. The firm’s total outstanding debt is estimated to be in the region of $1.5 billion. Founded nearly a decade ago by two Wall Street traders who were former schoolmates, 3AC operated as a regulated fund manager in Singapore until last year, when it shifted its home to the British Virgin Islands, reportedly part of a plan to relocate its operations to Dubai. The hedge fund suffered major losses in recent weeks due to a decline in the value of cryptocurrencies, sparked by U.S. Federal Reserve interest rate hikes and concerns over individual crypto coins and firms. Following the liquidation order, it is anticipated that credi...