According to Sky News reports, the British Virgin Islands has ordered cryptocurrency hedge fund firm Three Arrows Capital (3AC) bankrupt. This move will worsen the crypto space’s instability.
As per the allegation, associates from Teneo Restructuring in the British Virgin Islands have also been connected to managing the Singapore-based company’s bankruptcy. Recently at the start of this week, Voyager Digital announced that it had served a consent order on Three Arrows Capital.
According to the company, one of its subsidiaries sent 3AC a refusal warning for failing to pay off a debt. The debt contains 15,250 Bitcoin and $350 million in USDC, totaling approximately $660 million.
According to the study, insolvency might be a turning point for the fast-developing crypto industry’s future. Nevertheless, the initial financial consequences for Three Arrows’ creditors were unknown.
As per the previous reports, the Three Arrows Capital’s investments were quickly liquidated by crypto exchanges FTX, Deribit, and BitMEX.
Did Three Arrows Company Use Trader’s Money To Hold UST?
The failure of LUNA and UST in May has triggered a catastrophic scenario for Three Arrows company. The organization is claimed to have purchased capital from investors and invested them in the anchor protocol.
There is widespread criticism that Three Arrows neglected to notify traders of their UST holdings. The firm is accused of using counter-party money to develop a massive UST holding in anchor protocol.
So, what are your views? How bad will this update impact the broader crypto market?