BloombergCrypto investment firm Three Arrows Capital (3AC) filed for Bankruptcy “based on Chapter 15” on Friday, as reported.
According to the blockchain analysis platform Nansen, although the news of the bankruptcy was not unexpected, the company in question was managing $10 billion in funds until March, and this last one is pretty bad.
“Chapter 15 bankruptcy” is a law that enables cooperation between the international and U.S. court systems, and is usually filed with the aim of protecting the debtor’s assets.
Koinfinans.com As we have reported, the filing is Voyager Digital’s Three Arrows CapitalIt came hours after it suspended trading and withdrawals, citing $646 million in outstanding loans totaling $646 million. Voyager issued a notice of default to Three Arrows on Monday.
On Wednesday, a court in the British Virgin Islands ordered the liquidation of the fund due to inability to pay its debt. The Monetary Authority of Singapore also shared a message on Thursday condemning Three Arrows Capital for providing it with “false information” and “misleading”.
Before the bankruptcy, Three Arrows Capital was prominent with its many investments in crypto-asset-related ventures. The company was founded by Su Zhu and Kyle Davies in 2012 and has been involved in many of the biggest projects and companies in the crypto world. Some of these projects are; bitcoin, Ethereum, wither, Axie Infinity and BlockFi.
3AC lost nearly $200 million as Do Kwon’s algorithmic stablecoin UST destabilized and depreciated in May. BitMEX, FTX, and Deribit have since liquidated 3AC’s positions, followed by the inevitable doom.
With the collapse of Three Arrows, eyes are similarly troubled as it is rumored to be filing for its own bankruptcy CelsiusIt turns to .
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Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.