Hedge fund Crypto 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 dealers Zhu Su and Kyle Davies, simultaneously managed an estimated $10 billion in assets and was a mainstay among crypto finance players. Its bankruptcy has forced major industry players to adjust operations and reduce customer withdrawals amid the cryptocurrency sale that seemed to catch a lot of huge companies by surprise.
Chapter 15 bankruptcy will allow a foreign company to protect its offshore assets while the liquidation proceeds in the BVI after court order This week after 3AC defaulted on a $660 million loan to Voyager Digital. The headquarters of the company is located in Singapore.
The company’s ongoing meltdown is causing problems for many of the darlings of the venture-backed cryptocurrency. Earlier today, BlockFi announced a deal with FTX US and noted that it lost about $80 million from its dealings with 3AC.