cryptoknowmics.com
Cryptocurrency platforms Blockchain.com and Deribit confirmed that they are among the creditors that are seeking to liquidate crypto hedge fund Three Arrows Capital (3AC) at a court in the British Virgin Islands, according to a report from Bloomberg. On June 27, a court in the British Virgin Islands (BVI) ordered the 3AC to liquidate and appointed advisory firm Teneo to handle the process. It appears that Blockchain.com and Deribit were among the creditors that sought its liquidation in the BVI. Commenting on the move, a spokesman for Blockchain.com told the publication:
"We believe Three Arrows Capital defrauded the crypto industry and intend to hold them accountable to the fullest extent of the law. We have filed for the immediate liquidation of all global assets of Three Arrows."
Blockchain.com, Deribit Remain Unaffected
Liquidation refers to the formal shut down of a business due to its inability to pay off debt and other financial obligations. Whatever assets the company holds are then sold off to various creditors with outstanding loans. In the case of 3AC, the crypto hedge fund bears a loss of roughly $200 million following the project's collapse. Blockchain.com, a creditor of Three Arrows Capital said it has a strong financial position, and that customers would not be affected by the situation at 3AC. Meanwhile, Deribit, whose parent company counts Three Arrows as a shareholder also said that it remains financially healthy despite having a net debt that it considered potentially distressed. https://twitter.com/DeribitExchange/status/1537459035213074433