A court in the British Virgin Islands has ordered the liquidation of Singapore-based Three Arrows Capital, underlining the crisis gripping the cryptocurrency sector, according to a report by Sky News.

Sky News said partners from Teneo in the British Virgin Islands have been lined up to handle the insolvency of the Singapore-based firm, which was set up in 2012 by Su Zhu and Kyle Davies.

Alarm bells sounded earlier in June when digital assets broker Voyager Digital hinted it was looking at issuing a default notice relating to a loan believed to be valued at several hundred million dollars.