BREAKING: Court Orders Liquidation of Three Arrows Capital

A court based in the British Virgin Islands has ordered the liquidation of embattled cryptocurrency hedge fund Three Arrows Capital, Sky News reports. 

The company's insolvency is being handled by global advisory firm Teneo.

Rumors about 3AC's woes started swirling in early June. The once-dominant hedge fund has been hit extremely hard by the collapse of Terra and the ensuing market contagion.       

Earlier this month, the Wall Street Journal reported that the troubled hedge fund was seeking a bailout agreement after it started selling off its assets.

The Singapore-based firm was launched back in 2012 by former classmates Su Zhu and Kyle Davies.

The liquidation of one of the most influential cryptocurrency firms could cause more pain for the cryptocurrency sector, which is struggling to recover after a string of bad news. Bitcoin is currently trading slightly above the $20,000 level.