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(Bloomberg) --

Troubled crypto hedge fund Three Arrows Capital was ordered into liquidation by a court in the British Virgin Islands, according to a person familiar with the matter. 

The court, which made the order on Monday, has appointed two partners at consulting and advisory firm Teneo, to handle Three Arrows’s liquidation, said the person, who declined to be identified because the information is confidential. 

A web site will be set up to collect information from creditors on debts owed by the fund. After that, Teneo will oversee the distribution process, including talks with potential buyers that may be interested in Three Arrows’s remaining holdings, such as tokens or equity stakes in crypto startups, the person added. 

Three Arrows’s forced wind-down is one of a series of pain points that have rippled through the battered crypto sector, including the implosion of the TerraUSD stablecoin and liquidity issues at lenders Celsius Network and Babel. Three Arrows’s woes have hit firms such as crypto broker Voyager Digital Ltd. that lent to the fund. Voyager this week said it issued a notice of default to Three Arrows after failing to get repayment on a loan worth roughly $675 million.

Three Arrows’ fund is incorporated in the British Virgin Islands. The Commercial Court there orders a company to be liquidated if it is regarded as insolvent because it cannot pay its debts. Companies can also voluntarily liquidate, though that’s less common.  

Sky News reported on the liquidation order earlier.