Troubled cryptocurrency venture capital firm Three Arrows Capital (3AC) is facing increased uncertainty amid new reports of the company winding up.
A court in the British Virgin Islands ordered the liquidation of 3AC on June 27based in Singapore, British news agency Sky News reported on Wednesday.
The information in the report refers to an unspecified person familiar with the matter. Three Arrows Capital did not immediately respond to Cointelegraph’s request for comment.
Three Arrows Capital, also known as 3AC, is a Singapore cryptocurrency hedge fund founded in 2012 by Kyle Davies and Su Zhu. The firm has reportedly been unable to meet its lenders’ margin demands amid a massive market crash this year, with Bitcoin (BTC) dipping below $20,000 for the first time in two years.. 3AC reportedly borrowed BTC from cryptocurrency lending firm BlockFi, but was unable to meet a margin call due to the bear market.
The VC firm is estimated to have incurred $400 million in liquidations through multiple positions.
While the reports sparked rumors of 3AC’s insolvency, the company’s founders continued to assure customers that they will do everything possible to find an equitable solution. The company has hired legal and financial advisers to explore solutions such as asset sales and a rescue package from another company, Davies said. “We have always been believers in cryptocurrencies and continue to be,” he added.
The news comes shortly after cryptocurrency exchange Voyager Digital issued a default notice to 3AC for failing to repay its 15,250 BTC and 350 million USD Coin (USDC) loan.
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