Three Arrows Capital plunged deeper into financial turmoil Wednesday after a court in the British Virgin Islands ordered the crypto-focused hedge fund into liquidation following its failure to repay creditors as the value of bitcoin and other cryptocurrencies have nosedived, the Washington Post reported. The liquidation order comes after a high-profile notice of default: On Monday, crypto broker Voyager Digital announced that Three Arrows Capital had not made the required payments on a loan worth more than $665 million, paid partly in bitcoin. Two senior members of the global advisory firm Teneo have been appointed by the court to help manage the liquidation. In coming days, Teneo will have a website that will allow potential creditors of Three Arrows Capital to submit claims and receive more information about the insolvency. Three Arrows Capital was created in 2012 by Su Zhu and Kyle Davies, and is known for its bullish moves on crypto. But signs of trouble emerged in May when Su admitted publicly that his thesis about escalating crypto prices was “regrettably wrong.” Then, in a cryptic tweet earlier this month, he said that, “We are in the process of communicating with relevant parties and fully committed to working this out,” without offering relevant details. Days later, the Financial Times reported that Three Arrows Capital had failed to meet demands from lenders to show extra funds after its wagers on crypto had gone bust.
