Buy $GGsBreaking: Court Orders Liquidation Of Three Arrows Capital
Crypto hedge fund Three Arrows Capital (3AC) has reportedly plunged into liquidation, as per a Sky News report. This move could deepen the crisis that is already grappling the crypto space.
Three Arrows Capital (3AC) Liquidation
According to the report, partners from Teneo Restructuring in the British Virgin Islands has been lined up to handle the insolvency of the Singapore-based firm. Earlier in the week, Voyager Digital said it had issued Three Arrows Capital with a notice of default.
The firm said one of its units had issued 3AC with a default notice for its inability to repay a loan. The loan amount includes 15,250 Bitcoin and $350 million in USDC, worth around $660 million.
The report added that the liquidation could be a key moment for the prospects of the rapidly growing cryptocurrency sector. However, it was unclear what the immediate financial implications would be for Three Arrows’ creditors.
Where Did It All Begin For 3AC?
For Three Arrows, the crisis situation began with the collapse of LUNA and UST in May. The firm bought money off investors and deposited it into the Anchor protocol.
Speculation is rife that Three Arrows did not inform investors about its interests in UST position. The company allegedly used counter-party funds to build a huge UST position in the Anchor protocol.
The insolvency process is likely to affect the crypto space, which is already reeling from losses and speculation of crypto winter. 3AC acquired loans from several lenders including Celsius, FTX, BlockFi, BitMEX and Nexo.
Sami Rusani, a crypto investor, said there is need for more regulations to further legitimize the crypto industry.
Also, this could have a bearing on the proposed crypto bill by U.S. senators Cynthia Lummis and Kirsten Gillibrand. The bill plans to regulate various cryptocurrencies in separate categories.
The regulatory oversight for various cryptocurrencies in the overall financial picture could come under question following 3AC’s liquidation.
Play 10,000+ Casino Games at BC Game with Ease
- Instant Deposits And Withdrawals
- Crypto Casino And Sports Betting
- Exclusive Bonuses And Rewards
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- Peter Brandt Flips Bullish, Predicts Bitcoin Rally As Price Holds Above $70k
- XRP News: Institutional Use Case Expands as Doppler Finance Integrates WXRP for Multi-Chain Access
- Trump Tariffs: Bitcoin Faces Fresh Headwinds as 15% Global Tariffs Begin This Week Amid Iran War
- Bitget Unveils ‘Crypto Anti-Bias Pledge’ To Support Women’s Inclusion In Crypto
- U.S.-Iran War: Crypto Market Rebounds as Iran Reportedly Reaches Out To U.S. To End Conflict
- Dogecoin Price Outlook as BTC Recovers Above $73,000
- XRP Price Prediction as Iran-U.S. Peace Talks Trigger a Crypto Rally
- COIN Stock Analysis as Bitcoin Retests $72k Ahead of February NFP Data
- Robinhood Stock Price Prediction As Cathie Wood Buys $12M Dip in Bold ARK Move
- Bitcoin Price At Risk? Professor Who Predicted US-Iran War Says America Could Lose
- Gold Price Prediction March 2026: Rally, Crash, or Record Highs?
