When 3AC was registered as a fund management company in Singapore in 2013, it was allowed to manage funds for up to 30 investors worth up to $180 million. The fund had previously informed MAS that it was changing its management to the British Virgin Islands.
Three Arrows Capital, a hedge fund established in Singapore in 2012, has seen huge losses during the market decline in recent weeks while Bitcoin (BTC) has hovered around $20,000, compared to its previous highs of over $60,000.
According to reports earlier this month, Three Arrows Capital was potentially insolvent after having at least $400 million in liquidations. For the first time in two years, the business has reportedly failed to satisfy margin calls from its lenders during a severe market downturn this year. BlockFi, a cryptocurrency lending firm, is said to have supplied 3AC with Bitcoin, but the company was unable to fulfill a margin call owing to the bear market.
On Wednesday, the embattled hedge fund was forced into liquidation by the British Virgin Islands. The decision reportedly came on the same day that Voyager Digital sent a notice of default to 3AC for its failure to pay a 15,250 Bitcoin and 350 million USD Coin (USDC) loan.
Related: British Virgin Islands court reportedly orders to liquidate 3AC
On the other hand, the reports sparked rumors about 3AC’s bankruptcy. Despite this, the company’s creators continued to assure clients that they would do everything possible to find a fair resolution. The company engaged legal and financial consultants to look into options like asset sales and a rescue package from another firm, according to founder Kyle Davies.