According to a report in Bloomberg, Crypto hedge fund Three Arrows Capital (3AC) has filed for Chapter 15 bankruptcy in New York.
BREAKING: Three Arrows Capital has filed for Chapter 15 bankruptcy in New York. pic.twitter.com/U0SdHXSXWg
— Watcher.Guru (@WatcherGuru) July 1, 2022
The mega fund, founded by Zhu Su and Kyle Davies, managed approximately $10 billion in assets and was among crypto finance players. Its insolvency has forced major industry players to reshuffle operations and limit customer withdrawals amid a crypto selloff that seemed to catch plenty of mega-firms off guard.
Chapter 15 bankruptcy will permit the foreign firm to protect its stateside assets while the liquidation is carried out 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 firm collapse is causing trouble for plenty of venture-backed crypto darlings. Earlier today, BlockFi announced a deal with FTX U.S. and noted that it had lost around $80 million from its dealing with 3AC
