Cryptocurrency hedge fund Three Arrows Capital (3AC) is about to face legal consequences for not paying debts on time as a court in the British Virgin Islands has ordered consulting and advisory firm Teneo to handle the insolvency of the hedge fund, Sky News reports, citing sources close to the matter.
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While it remains unclear at what stage the liquidation is, 3AC Co-Founder Kyle Davies recently told the Wall Street Journal that the fund was "committed to working things out and finding an equitable solution for all our constituents". It is also not clear if the fund is still sticking to its pledge.
The reports come shortly after Voyager Digital said that Three Arrows Capital failed to repay 15,250 BTC and $350 million in USDC. The crypto broker said it intends to perform legal remedies from 3AC and is already in discussions with a group of advisors.
In a recent interview with Forbes, FTX Founder and CEO, Sam Bankman-Fried (who's also the largest shareholder of Voyager Digital), said that some companies have gone too far "and it's not practical to backstop them."
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