Three Arrows Capital Files For Bankruptcy: Report

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

Whereas not unexpectedthe news brings an ignominious end to the prominent decade-old firm that managed up to $10 billion in assets as recently as March, according to blockchain analytics platform Nansen.

Chapter 15 Bankruptcy allows for cooperation between the international and US legal systems and is usually filed for the purpose of protecting the debtor’s assets.

The file appeared a few hours after Voyager Digital suspended transactions and withdrawals, citing unpaid loans to Three Arrows totaling $646 million. Voyager issued three arrows one Notice of Default In Monday.

On Wednesday, a court in the British Virgin Islands ordered the fund to liquidate due to an inability to repay the debt. And the Monetary Authority of Singapore chastised Three Arrows on Thursday for providing him with “false information” and being “misleading”.

Prior to its insolvency, Three Arrows Capital was known for its numerous investments in crypto-related businesses. The company was founded in 2012 by Su Zhu and Kyle Davies, and has claimed positions in many of crypto’s most prominent ventures and ventures: Bitcoin, Ethereum, Solana, Axie Infinityand BlockFi.

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

With the collapse of Three Arrows, eyes turn to Celsius equally troubledsaid to be prepare your own bankruptcy filing.

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