Three Arrows Crypto Hedge Fund goes bankrupt

• Crypto Hedge three Arrows was unable to meet lenders’ demands for additional funds earlier this month.
• Liquidation comes as global investors dump speculative assets amid slowing global growth.
•  The hedge fund was run by Su Zhu and co-founder Kyle Davies, and recognised for its leveraged bets on cryptocurrency prices.

The crypto hedge fund Three Arrows Capital has declared bankruptcy, becoming the latest prominent victim of the credit crisis sweeping the digital asset market.

Read More: Luxottica founder Leonardo Del Vecchio passes away

A court decision in the British Virgin Islands this week appointed Teneo as “joint liquidators” of Three Arrows, according to a source with knowledge of the situation.

The decision to liquidate Three Arrows comes as crypto market tremors have accelerated in recent weeks as global investors dump speculative assets out of worry for slowing global growth and decisions by major central banks to further tighten monetary policy.

Read More: Philippine SEC demands closure of Nobel laureate’s news website Rappler

The Singapore-based and British Virgin Islands-registered Three Arrows is one of the most well-known investors in the cryptocurrency industry. The group did not immediately react to a request for comment on the liquidators’ appointment, which was first reported by Sky News.

Three Arrows was unable to meet lenders’ demands for additional funds earlier this month, as its digital currency wagers had gone awry. It was run by Su Zhu and his co-founder Kyle Davies and was recognised for its leveraged bets on rising cryptocurrency prices. According to Zhu’s “supercycle” theory, prices would continue to rise without resuming a bear market in the foreseeable future as a result of rising popular acceptance.

Bitcoin, the most regularly traded cryptocurrency, is down more than 50 percent in 2018.