Three Arrows Capital (3AC), a cryptocurrency hedge fund, has filed for Chapter 15 bankruptcy in order to shield its US assets from creditors in the country, as previously reported by Bloomberg and CNBC. Representatives for the Singapore-based company filed the petition in a Southern District New York court on Friday, which legally shields bankrupt overseas debtors’ US assets from creditors in the US.
3AC, founded in 2012 by Kyle Davis and Su Zhu, had around $10 billion in assets as recently as March, before dropping to $3 billion in April. 3AC’s fortunes, like those of numerous other crypto enterprises, including lending titans Celcius and Babel Finance, are part of the so-called crypto “winter” that has knocked down stablecoins and sent Bitcoin’s value down.
Earlier this week, allegations surfaced that 3AC had failed to repay a $670 million loan issued by crypto broker Voyager Digital, resulting in the suspension of all transactions, deposits, and withdrawals. Later, Sky News claimed that a British Virgin Islands court had ordered 3AC’s liquidation and that the corporation is apparently collaborating with business consulting firm Teneo to monitor the process.
In an interview with the Wall Street Journal in May, Davies and Zhu revealed that the company lost a $200 million investment due to the crash of Luna and its sibling coin TerraUSD.
