Cryptocurrency Hedge Fund Three Arrows Capital (3AC) archived filed for Chapter 15 bankruptcy in an effort to protect its US assets from creditors in the country, as previously reported by Bloomberg and CNBC†Representatives of the Singapore-based company filed the application Friday in a court in New York’s Southern District, which: legally protected the US assets of insolvent foreign debtors of US creditors.
Founded in 2012 by Kyle Davis and Su Zhu, 3AC managed approximately $10 billion in assets in Marchsinking later up to $3 billion in April†Like several other crypto firms, including credit giants Celcius and Babel Finance, 3AC’s turn in fortunes is part of the so-called crypto “winter” that has brought stablecoins down and the value of Bitcoin plummet.
Earlier this week, reports came out that 3AC Couldn’t Pay a $670 Million Loan provided by crypto broker Voyager Digital, which: has since ceased all transactions, deposits and withdrawals as result. Sky News reported later that a court in the British Virgin Islands has ordered the liquidation of 3AC and that the company is reportedly working with business consultancy Teneo to oversee the process.
In May, Davies and Zhu admitted in an interview with the WSJ that the company missed out on a $200 million investment after the crash of Luna and its sister coin TerraUSD†The two remained optimistic about crypto’s prospects at the time, telling the WSJ that they “have always been crypto believers” and “still are”.