Crypto hedge fund Three Arrows Capital (3AC) has filed for Chapter 15 bankruptcy in New York, according to a report in Bloomberg.
Founded by Credit Suisse traders Zhu Su and Kyle Davies, the mega-fund once managed an estimated $10 billion in assets and has been a linchpin among crypto finance players. The insolvency has forced major industry players to rearrange their operations and limit customer withdrawals amid a crypto sell-off that caught many mega-corporations by surprise.
Chapter 15 bankruptcy allows the foreign company to protect its assets to the state while liquidation is underway in the British Virgin Islands following a court order this week after 3AC defaulted on a $660 million loan to Voyager Digital. 3AC is based in Singapore.
The ongoing collapse of the company is causing problems for numerous venture capital backed crypto treasures. Earlier today, BlockFi announced a deal with FTX US, noting that it had lost approximately $80 million through its dealings with 3AC.
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This post Crypto mega hedge fund Three Arrows Capital reportedly files for bankruptcy in New York – TechCrunch
was original published at “https://techcrunch.com/2022/07/01/crypto-mega-hedge-fund-three-arrows-capital-reportedly-files-for-bankruptcy-in-new-york/”