The insolvency challenge of the open ends fund, Three Arrows Capital was summoned by a British Virgin Islands court on June 27th, an informant disclosed to CoinDesk.
3AC has been an active firm in the various niches of the crypto industry, ranging from blockchains to NFTs, as well as decentralized finance.
Further revelations highlighted that members of the New York-based restructuring firm, Teneo Global have been invited to help deal with the liquidation.
Three Arrows Capital which began its operation in 2012 and is co-owned by Kyle Davies and Su Zhu has encountered a huge amount of losses due to the harsh realities of the crypto market. The probability of bankruptcy was published in the earlier days of this month after the company suffered unexpected insolvency of over $400 million.
Earlier this week, 3AC received a default reminder from Voyager Digitals on its failed response in repayment of the line of credit comprising 15,250 BTC and a $350 million worth of USD Coins.
Voyager Digital was reported to have encountered a decline in the value of its shares after publications of its exposure to 3AC.
The legal invitation of Teneo’s Global has been aired on Sky News, however, the restructuring company has refuted the need to drop any comment.