Crypto hedge fund Three Arrows Capital is reportedly facing liquidation after a recent court order.

According to a new report from Reuters, a court in the British Virgin Islands has ordered the liquidation of the Singapore-based firm on Monday.

Reuters says that Teneo, a global consultancy and advisory firm, has been appointed as liquidators.

The court order comes just days after the firm received a notice of default from crypto platform Voyager Digital related to a loan worth hundreds of millions of dollars.

The notice was sent after Three Arrows Capital failed to make payments on a loan of 15,250 Bitcoin (BTC), worth about $324 million at the time, and $350 million worth of stablecoin USD Coin (USDC), according to a press release.

Earlier this month, Three Arrows Capital founders Su Zhu and Kyle Davies, who set up the company in 2012, said that the firm was ailing due to the latest sharp crypto market downturn, plus the collapse of Terra (LUNA), which they had exposure to.

Zhu and Davis said they hired legal experts and financial advisers to help resolve the situation.

“We have always been believers in crypto and we still are. We are committed to working things out and finding an equitable solution for all our constituents.”

Two weeks ago, Zhu addressed rumors about the company, telling his 567,000 Twitter followers that the hedge fund was willing to work with those affected by its struggles.

“We are in the process of communicating with relevant parties and fully committed to working this out.”

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