Source: a British Virgin Islands court ordered the liquidation of Singapore-based Three Arrows Capital on June 27; Teneo will handle the insolvency process
Teneo takes control of the insolvency process, replacing Three Arrows Capital's own management as the mechanism for handling the failed fund's estate.
Creditors move from closing positions individually toward a court-supervised process for asserting claims against Three Arrows Capital.
Second-order effects
BlockFi and other counterparties that had already liquidated positions must reconcile those actions with Teneo's administration and the broader creditor process.
The later Chapter 15 filing extends the British Virgin Islands liquidation's reach to US assets, making cross-border asset preservation part of the recovery process.
Third-order effects
The later effort to recover $1.3B from the co-founders shows how a fund liquidation can progress from asset control to pursuing insiders, rather than ending with the initial unwind.
For internationally structured crypto funds, the sequence points toward insolvencies being resolved through coordinated offshore and US court processes rather than solely through exchange or lender liquidations.
The trend: Crypto-fund failures are moving from rapid counterparty liquidations into cross-border court processes that centralize asset recovery and creditor claims.
Firstly: lol Secondly: PR firm Teneo has a Restructuring practice in the BVI?! lol https://twitter.com/...
@samrusani
Sami Rusani on x
The end of a cowboy era. Good. This bear market has seen a wipe-out of shitty unicorn fart and rainbow products and platforms. Unfortunately, some bet on the wrong things like 3AC did. We need more regulations to further legitimize this industry. https://news.sky.com/...
@markkleinmansky
Mark Kleinman on x
Exclusive: Three Arrows Capital, a cryptocurrency-focused hedge fund, has plunged into liquidation, underlining the crisis engulfing the digital assets industry and raising questions about its regulatory oversight in the world's major financial centres. https://news.sky.com/...
@john_acw
@john_acw on x
OOF “He added that Three Arrows was exploring options such as the sale of assets or a rescue by another firm” https://news.sky.com/...
@dfjonsson
Daniel Jonsson on x
This is not the mainstream we were all hoping for 😕 https://news.sky.com/...
@evgenygaevoy
@evgenygaevoy on x
Kind of surprised with lack of analysis from top research/news outlets simply looking at exchanges 3ac/Babel interacted with https://twitter.com/...
@pentosh1
@pentosh1 on x
History of exchanges in crypto since inception to now have their own cycles. Personally wouldn't have funds on anything less than Tier 1 exchanges right now. This happens every cycle. Nor would I in high ponzi yield services if you haven't learned yet. This coming from SBF btw ht…
@sundeep
Sunny Madra on x
No your keys, not your crypto. https://twitter.com/...
@coloradotravis
@coloradotravis on x
“Secretly” insolvent lol. Sure, in the way children with no object permanence think you're gone forever when you put a napkin in front of your face. https://twitter.com/...
@lopezlinette
Linette Lopez on x
But he'll be fine obviously and of course. https://twitter.com/...
@riddle245
@riddle245 on x
Specifically calls out that there are third tier crypto exchanges which are secretly insolvent and admits to taking on somewhat bad deals rn to keep things afloat altho not altruistic. https://twitter.com/...
@bowtiedbull
@bowtiedbull on x
There is no secret about it get you funds off exchanges has been repeated here for years now. Massive insolvency issues still in crypto and *gasps* tradfi soon if re/stocks collapse https://twitter.com/...
@tbr90
Tyler Reynolds on x
There's really no benefit to keeping your assets on any exchange https://www.forbes.com/...
@williamcraddick
William Craddick on x
.@SBF_FTX on Tether https://www.forbes.com/... https://twitter.com/...
@xrpcryptowolf
@xrpcryptowolf on x
FTX founder Sam Bankman-Fried tells Forbes that more crypto exchange failures are coming. “There are some third-tier exchanges that are already secretly insolvent” https://www.forbes.com/...
@bennetttomlin
Bennett Tomlin on x
Yeah yeah yeah we established definitively that even top ranking exchanges were willing to be secretly insolvent years ago https://twitter.com/...