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A creditor of Three Arrows Capital, Blockchain(dot)com, revealed that it is cooperating with the ongoing investigations into the troubled crypto hedge fund.
Blockchain.com and a crypto derivative exchange, Deribit, have confirmed the news of being one of the creditors who sought the liquidation of Three Arrows at a court in the British Virgin Islands, as per a court filing and representatives at the two companies. On Monday came the order from the court. It appointed two partners at consulting and advisory firm Teneo to take care of the whole process, said a source familiar with the matter.
In a statement sent through Blockchain(dot)com, a spokesperson noted that they firmly believe that Three Arrows Capital defrauded the crypto industry and plan to hold them accountable for their actions. The spokesperson also revealed that they have filed for the immediate liquidation of Three Arrows’ global assets.
On Thursday, the Monetary Authority of Singapore rebuked Three Arrows for giving false information and exceeding the maximum amount of money it was permitted to manage. In a statement, the central bank said it has been investigating these actions since June 2021.
The liquidation order brings down the curtain on one of the most famous hedge funds of crypto, founded in 2012 by former Credit Suisse Group AG traders Su Zhu and Kyle Davies. According to blockchain analytics firm Nansenm, Three Arrows has roughly $10 billion in assets under management as of March. Earlier this month, Davies shared with the Wall Street Journal that in April, around $3 billion were in assets under management before the crypto collapse.
A partner at law firm Solitaire LLP, Nichol Yeo, told the Wall Street Journal while seeking legal advice in the British Virgin Islands, it is considering options.
A crypto wallet and exchange based in London, Blockchain(dot)com, as of March, is valued at $14 billion; it shared that it will continue to be liquid and solvent while holding a strong financial position, and customers will remain unaffected.
Deribit took to Twitter to share that despite having a net debt that it believes to be distressing, it is functioning very well financially. The parent company of Deribit counts Three Arrows as a shareholder. The Three Arrows’ destruction has also affected firms such as Voyager Digital Ltd, a crypto broker that has issued a notice of default to the fund.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
