Another cryptocurrency company bites the dust. Last Friday, Singapore-based crypto hedge fund Three Arrows Capital (3AC) filed for Chapter 15 bankruptcy in New York to protect its US assets from creditors.
The filing came after a report earlier last week that indicated 3AC failed to pay back a $670m loan offered by crypto broker Voyager Digital. Another report went on to add that a court in the British Virgin Islands ordered 3AC’s liquidation.
Kyle Davis and Su Zhu founded 3AC in 2012, managing about $10 billion in assets as of March, which later fell to $3 billion in April. In May, 3AC founders admitted to the Wall Street Journal that their hedge fund took a $200m hit after the crash of Luna and its sister token TerraUSD.
The extent of three arrows borrowing has fallen onto crypto lenders Voyager Digital and BlockFi, which stand to lose more than $650 million worth of loans and $80mn in losses due to the Three Arrows collapse.
