Reports said that a court in the British Virgin Islands ordered the liquidation of Singapore-based troubled cryptocurrency venture capital firm Three Arrows Capital (3AC) on Monday, as 3AC is facing more uncertainty amid new reports on the company’s liquidation.
It has been reported that 3AC has reportedly failed to meet margin calls from its lenders amid a massive market downturn this year, with Bitcoin (BTC) dropping below $20,000 for the first time in two years.
However, 3AC borrowed BTC From crypto lending firm BlockFi but was unable to meet a margin call due to the bear market. The VC firm was estimated to have incurred $400 million in liquidations across multiple positions.
The report said that while the reports triggered rumors about 3AC’s insolvency, the company’s founders continued to assure customers that they will do their best to find an equitable solution.
Davies said that the firm hired legal and financial advisers to explore solutions like asset sales and a rescue package by another firm.
He added:
“We have always been believers in crypto and we still are.”
Thus, the news comes shortly after the crypto exchange Voyager Digital issued a notice of default to 3AC for its failure to pay its 15,250 BTC and 350 million USD Coin (USDC) loan.
Source: Cointelegraph