Cryptocurrency hedge fund Three Arrows Capital (3AC) has filed for Chapter 15 bankruptcy in New York, according to a report in Bloomberg.
The mega-fund, founded by Credit Suisse traders Zhu Su and Kyle Davis, once managed about $10 billion in assets and was a key player in the crypto finance space. Its insolvency forced the big players in the industry to shuffle operations and limit customer withdrawals amid a cryptocurrency sell-off that seemed to take a lot of mega-firms by surprise.
Chapter 15 bankruptcy will allow a foreign firm to protect its U.S. assets while the liquidation proceeds in the British Virgin Islands after court order this week after 3AC defaulted on a $660 million loan to Voyager Digital. The firm is based in Singapore.
The ongoing collapse of the firm is creating problems for many crypto venturers. Earlier today, BlockFi announced a deal with FTX US and noted that it lost about $80 million in deals with 3AC.
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Credit: techcrunch.com /