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Three Arrows Capital files for bankruptcy

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Cryptocurrency investment firm Three Arrows Capital, also known as 3AC, filed for Chapter 15 bankruptcy on Friday, Bloomberg reported.

While not unexpected, the news brings a melancholy end to the prominent decade-old company that managed up to $10 billion in assets in March, according to blockchain analytics platform Nansen.

Bankruptcy under Chapter 15 of the US Specialized Justice Code allows for cooperation between the US and international court systems and is typically filed in an effort to protect the debtor’s assets.

The order came hours after Voyager Digital suspended trading and withdrawals, citing unpaid loans to Three Arrows totaling $646 million. The brokerage issued a notice of default to Three Arrows on Monday.

On Wednesday, a British Virgin Islands court ordered liquidation of the fund due to an inability to pay the debt. And the Monetary Authority of Singapore reprimanded Three Arrows on Thursday for providing “false information” and being “misleading”.

Prior to its insolvency, Three Arrows Capital was known for its many investments in cryptocurrency-related ventures. The company was founded in 2012 by Su Zhu and Kyle Davies, and has promoted positions in many of the biggest cryptocurrency projects and companies: Bitcoin, Ethereum, Solana, Axie Infinity and BlockFi.

The company lost about $200 million when Do Kwon’s UST algorithmic stablecoin destabilized and plummeted in value in May. BitMEX, FTX and Deribit have already liquidated 3AC’s positions.

With Three Arrows collapsing, eyes turn to Celsius, who is preparing for his own bankruptcy filing.

*Translated with permission from Decrypt.co.



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