British Virgin Islands court reportedly orders to liquidate 3AC

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Troubled crypto venture capital firm Three Arrows Capital (3AC) is facing more uncertainty amid fresh reports of the company’s liquidation.

A court in the British Virgin Islands has ordered the liquidation of Singapore-based 3AC, the British news agency Sky News reported on Wednesday.

The information in the report refers to an unidentified 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 Singaporean cryptocurrency hedge fund founded in 2012 by Kyle Davies and Su Zhu. The company has reportedly failed to meet margin requests from its lenders amid a major market downturn this year, with Bitcoin (BTC) dropping below $20,000 for the first time in two years. 3AC reportedly borrowed BTC from crypto lender BlockFi but was unable to meet margin demand due to the bear market.

The venture capital firm is estimated to have incurred $400 million in divestitures across multiple centers.

While reports sparked rumors of 3AC’s bankruptcy, the company’s founders continued to assure customers that they would do their best to find a fair solution. Davis said the company has hired legal and financial advisors to explore solutions such as asset sales and a bailout package by another company. “We have always been a believer in cryptocurrencies and still are,” he added.

Related: Analyst Says Crypto Lending Can Still Withstand Bear Market

The news comes shortly after cryptocurrency exchange Voyager Digital issued a default notice to 3AC for failing to repay a loan of 15,250 BTC and $350 million (USDC).

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