Virtual Currency Hedge Fund Three Arrows Ultimately Declares Bankruptcy

[Asia Economy New York=Special Correspondent Joselgina] The cryptocurrency hedge fund 'Three Arrows Capital' has ultimately declared bankruptcy.

The Wall Street Journal (WSJ) reported on the 29th (local time), citing sources, that Three Arrows was declared bankrupt on the 27th by a court in the British Virgin Islands.

The Virgin Islands court appointed two partners from the restructuring advisory firm Teneo as bankruptcy trustees to manage the bankruptcy proceedings of Three Arrows. Teneo plans to identify the assets held by Three Arrows and then collect debt information from creditors.

Recently, due to the sharp decline in the cryptocurrency market and worsening liquidity, Three Arrows failed to repay $350 million worth of the stablecoin USDC and 10,250 bitcoins worth $304.5 million to the digital asset brokerage Voyager Digital. The company had previously invested in the Korean cryptocurrency Luna.

Bitcoin, the leading cryptocurrency, briefly fell below the $20,000 mark this morning but has since slightly rebounded and is trading in the low $20,000 range.