The Singapore-based cryptocurrency hedge fund – Three Arrows Capital – has reportedly been ordered into liquidation following the downturn of the market and the challenges it faced recently.
- According to Sky News coverage, a court in the British Virgin Islands has ordered Three Arrows Capital into liquidation.
- Citing sources familiar with the matter, the report argues that the “liquidation would be a significant moment in the current unraveling of the cryptocurrency sector, which has grown at breakneck speed in recent years.”
- At the time of this writing, the immediate financial implications for creditors of 3AC are unclear.
- As CryptoPotato reported earlier, one of the creditors is Voyager Digital. The company previously disclosed exposure to the extent of some $500 million to Three Arrows Capital and also stated that it’s “unable to assess the amount it will be able to recover.”
- Meanwhile, the broader cryptocurrency market took a beating on Wednesday and is down some $60 billion over the past 48 hours.
- At the time of this writing, BTC is trading at slightly above $20,000 in anticipation of important releases such as the GDP quarter-over-quarter for Q1, as well as the speech of the Chairman of the Federal Reserve – Jerome Powell, which is scheduled for later today.