BlockNews
  • Crypto
  • Finance
  • Politics
  • Memecoins
  • NFT
  • Technology
  • Opinion
No Result
View All Result
FOLLOW
BlockNews
  • Crypto
  • Finance
  • Politics
  • Memecoins
  • NFT
  • Technology
  • Opinion
No Result
View All Result
BlockNews

Crypto Hedge Fund Three Arrows Capital Forced to Liquidate

by BlockNews.com Team
June 30, 2022
in Business, DeFi
A A
Crypto Hedge Fund Three Arrows Capital Forced to Liquidate
1
SHARES
Share on TwitterShare on Reddit

A British Virgin Islands court ordered the liquidation of Three Arrows Capital, the crypto hedge fund that bet big on everything from Bitcoin to the ill-fated Luna tokens and then succumbed to a $2 trillion wipeout of the digital-asset markets. 

The court, which made the order on Monday, has appointed two partners at consulting and advisory firm Teneo to handle the liquidation, according to a person familiar with the matter, who declined to be identified because the information is confidential. 

Teneo will oversee talks with potential buyers that may be interested in Three Arrows’s remaining holdings, such as tokens or equity stakes in crypto startups, the person added. A website will be set up to locate creditors and determine who is owed what. Three Arrows has invested in a range of decentralized finance platforms such as Aave and dYdX, as well as crypto infrastructure firms such as StarkWare, according to its website. It’s not immediately clear what or how much of these holdings will be subject to a sale. 

The court order brings down the curtain on one of crypto’s most famous hedge funds, founded by Zhu Su and Kyle Davies, former Credit Suisse traders, at the kitchen table of their apartment in 2012. Their fortune rose along with the crypto market bull run, and Three Arrows’ assets under management were estimated to be about $10 billion in March, according to blockchain analytics firm Nansen. In April, Zhu said the fund is planning to move its headquarters to Dubai from Singapore. 

Three Arrows has become emblematic of the industry’s excesses during last year’s bull run, when firms built up the leverage that hobbled them as the market turned. This month, a cryptic tweet from Zhu hinted at Three Arrows’s reversal of fortune and growing plight, setting off a market spasm.

We are in the process of communicating with relevant parties and fully committed to working this out

— 朱溯 🐂 (@zhusu) June 15, 2022

The liquidation of Three Arrows “will present a setback to the industry’s policy efforts and ongoing engagement in DC,” said Ryan Selkis, co-founder of Messari Inc., a crypto data and research platform. “Many of the centralized institutional leaders in the space had poor risk controls, and put customer funds at risk.”

By submitting my information, I agree to the Privacy Policy and Terms of Service and to receive offers and promotions from Bloomberg.

The fund’s liquidity crunch is among a series of crises that rippled through the battered crypto sector during this year’s downturn, including the implosion of the TerraUSD stablecoin and liquidity issues at lenders Celsius Network and Babel Finance. Three Arrows’s woes have hit firms such as crypto broker Voyager Digital Ltd., which this week said it issued a notice of default to Three Arrows after failing to get repayment on a loan worth roughly $675 million. Earlier, crypto lender BlockFi and prime brokerage Genesis said they had to liquidate one of their large counterparties recently, without naming the counterparty. 

Three Arrows’ fund is incorporated in the British Virgin Islands. The Commercial Court there orders a company to be liquidated if it is regarded as insolvent because it cannot pay its debts. Companies can also voluntarily liquidate, though that’s less common.  

Tags: LiquidationThree Arrows Capital
TweetShareShare

DON'T MISS THESE! HOT OFF THE PRESS

Sui’s On-Chain Metrics Indicate Strong Adoption Despite Price Dip: Is Now a Buying Opportunity?
Crypto

Sui’s On-Chain Metrics Indicate Strong Adoption Despite Price Dip: Is Now a Buying Opportunity?

May 20, 2025
TRX Above Key Support: Can the Golden Cross Outweigh Fading Whale Interest?
Crypto

TRX Above Key Support: Can the Golden Cross Outweigh Fading Whale Interest?

May 19, 2025
$AAVE on the Rise Again: Here’s Why Analysts Say It’s Far from Done
Crypto

$AAVE on the Rise Again: Here’s Why Analysts Say It’s Far from Done

May 18, 2025
HYPE’s Billion-Dollar Milestone: TVL Surge and Bullish Channel Defy Spot Volume Dip
Crypto

HYPE’s Billion-Dollar Milestone: TVL Surge and Bullish Channel Defy Spot Volume Dip

May 17, 2025
SUI Unleashed: Institutional Money and DeFi Volume Propel Its Rise
Crypto

SUI Unleashed: Institutional Money and DeFi Volume Propel Its Rise

May 17, 2025
BNB to $900? Explosive Wallet Growth and On-Chain Surge Point to Breakout
Binance BNB

BNB to $900? Explosive Wallet Growth and On-Chain Surge Point to Breakout

May 17, 2025
Load More

Related News

Chainlink (LINK) Eyes $19.80: Ecosystem Growth and Bullish Patterns Align

Chainlink (LINK) Eyes $19.80: Ecosystem Growth and Bullish Patterns Align

May 21, 2025
Aptos (APT): Short-Term Chop, Long-Term Hopes for a $10+ Rebound

Aptos (APT): Short-Term Chop, Long-Term Hopes for a $10+ Rebound

May 21, 2025
Cardano Founder ATTACKED by Fake News: Denies $600 Million ADA Theft Allegations (The Truth)

Cardano Founder ATTACKED by Fake News: Denies $600 Million ADA Theft Allegations (The Truth)

May 21, 2025
Institutions Are Buying Bitcoin—Heavily. What Do They Know That Retail Doesn’t?

Institutions Are Buying Bitcoin—Heavily. What Do They Know That Retail Doesn’t?

May 20, 2025
Bitcoin Could Cause a MASSIVE Short Squeeze if Price Breaks Above THIS Level

Bitcoin Could Cause a MASSIVE Short Squeeze if Price Breaks Above THIS Level

May 20, 2025
Discord Twitter Youtube TikTok Instagram

BLOCKNEWS.COM

BlockNews

BlockNews.com is your premier source for real-time cryptocurrency, blockchain, and financial market news.

Our mission is to deliver accurate, timely, and insightful information to help both seasoned investors and newcomers navigate the evolving digital economy.

With in-depth analysis, exclusive insights, and up-to-date news, BlockNews.com keeps you informed on the latest trends in crypto, DeFi, NFTs, tech, and beyond.

Stay ahead of the herd with BlockNews.com

RESOURCES

  • About
  • Contact Us
  • Terms and Conditions
  • Privacy Policy

POPULAR TOPICS

$ADA $XRP AI Avalanche Binance Bitcoin Bitcoin ETF blackrock Blockchain BTC Business Cardano China Coinbase Coinglass crypto cryptocurrency Crypto Exchange Crypto Regulation DeFi Dogecoin Donald Trump Elon Musk ETF eth ethereum Federal Reserve FTX grayscale Memecoin metaverse Microstrategy NFT NFTs PEPE ripple sec Shiba Inu Solana Stablecoin Technology twitter US Web3 xrp

GET QUICKER UPDATES ON X

© 2022-2025 BlockNews.com - Crypto and NFT news website by Aiur Labs.

No Result
View All Result
  • Home
  • Crypto
  • Memecoins
  • Technology
  • Politics
  • Finance
  • NFT
  • DeFi
  • Opinion

© 2022-2025 BlockNews.com - Crypto and NFT news website by Aiur Labs.