Three Arrows Capital has been ordered into liquidation by the court in the British Virgin Islands following the downturn of the market and the challenges that it faces recently so let’s read more today in our latest cryptocurrency news.
According to reports, Three Arrows Capital has been ordered into liquidation after the market downturn, by a court in the British Virgin Islands. Citing sources familiar with the matter, the report read that the liquidation will be a huge moment in the current unveiling of the crypto sector which has grown at a fast speed in recent years. At the time of writing, the immediate financial implications for creditors of 3AC are still unclear.
One of the creditors is Voyager Digital and the company previously disclosed exposure to the extent of $500 million to Three Arrows Capital and stated that it is unable to assess the amount that will be able to recover. In the meantime, the broader crypto market took a beating and it is now down by $60 billion in the past two days. At the time of writing, BTC is trading above $20,000 in anticipation of important releases like the GDP quarter over quarter for Q1.
As recently reported, Voyager Digital is making good on the promises to chase down crypto hedge fund Three Arrows Capital for owed money and the broker reportedly lent Three Arrows Capital $350 million in USDC and 15,250 BTC which totaled $673 million in today’s prices. Voyager Digital issued a default notice against 3AC and it claimed that it requested a partial $25 milion USDC repayment and added that it sought full repayment by today.
It seems that neither of the requests was met which is why it led to this afternoon’s default notice and claims that 3AC is insolvent. The default notice is a formal response that is issued by the lender when a borrower missed payments on their loan. Such a note doesn’t ensure that the lender will be made whole and it might mean that they can soon collect the initial collateral. Voyager concluded that its intent was on recovering the loan entirely but the company was unable to assess the amount that it will be able to recover from 3AC.
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