Three Arrows Capital is being put out of its misery.
On Tuesday, a Virgin Island court ordered the collapse of the hedge fund after it was sued for repayment of loans. The order may mark the end of 3AC's business and will result in its assets being distributed in an effort to repay its debts. The downfall of 3AC, which used to manage upwards of $18 billion in assets, is one of the most significant casualties of the crash so far.
The Wall Street Journal reports that the firm had $3 billion in assets in April. According to reports, 3AC invested in Luna, the Grayscale Bitcoin Trust, and Terra, all of which are worthless. Like many others in the industry, 3AC was hurt by the falling values ofCryptocurrencies. It was the lowest point in a year and a half for the digital currency.
3AC did not reply immediately.
Though rumors of 3AC's insolvency have been circulating for a while, the damage was revealed last week when a notice of default was ordered against the hedge fund. The hedge fund was in default on its loan from Voyage on Monday.
Voyager intends to pursue recovery from 3AC and is in discussions with the Company's advisors as to legal remedies available Gizmodo reached out to the company, but they didn't respond.
Teneo is in the process of determining what assets the hedge fund still has according to a recent CNBC report. The instructions for how to make a claim are going to be on the website.
3AC was accused of running an old-fashioned Ponzi scheme by a research firm the day before the hedge fund was ordered to liquidate. According to the report, 3AC's founders borrowed from other lenders and used those loans to pay off their own loans. 3AC went down a chasm of disaster because of the twisting cycle of borrowing, according to the report.
All Rights Reserved © 2024
