HomeBlockchainBlockchain NewsThree Arrows Capital has gone bankrupt

Three Arrows Capital has gone bankrupt

Three Arrows Capital, a failing crypto hedge fund, has finally gone bankrupt. Teneo Restructuring has been hired to help with the liquidation process.

Following the Terra Luna debacle, and one of the first dominos to fall as a result of its exposure to it, Three Arrows Capital has finally gone bankrupt.

The contagion has since spread, and other cryptocurrency platforms are also in danger. Voyager Digital is currently experiencing liquidity issues as a result of Three Arrows Capital’s failure to repay a $670 million loan from Voyager.

Sam Bankman-Fried has extended a credit line to Voyager in order for it to honor its commitments and has also extended it to BlockFi, another at-risk platform with ties to Three Arrows Capital.

According to a CNBC article, Teneo has been called in to oversee the liquidation process, though neither Three Arrows Capital nor Teneo has confirmed this.

According to the article, Teneo will inventory the Three Arrows Capital assets and will launch a website detailing how creditors can contact them and file claims within the next few days.

According to the Financial Times, BlockFi and Genesis both liquidated some of the Three Arrows positions by taking the collateral they had put up to back their borrowing.

The liquidation of Three Arrows is bound to have a negative impact on an already shaky crypto sector, which sees bitcoin struggling to stay above the crucial $20,000 price level, while most altcoins fare much worse.

As previously reported by Crypto Daily, the lack of liquidity has spread to crypto lender Celsius, which has frozen investor assets on its platform for several weeks. The lender is currently debating whether to declare bankruptcy or accept a bailout package from Simon Dixon and Bank to the Future.

Cryptocurrency exchange CoinFlex is yet another platform facing some difficulties. Roger Ver is rumored to be the counterparty who has defaulted on his debt and owes the platform $47 million. Mr. Ver has denied the allegation.

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