Cryptocurrency investment firm Three Arrows Capital, also known as 3AC, filed a Chapter 15 bankruptcy filing on Friday, Bloomberg has reported.
While not unexpected, the news marks an ignominious end for the prominent decade-long company that managed up to $ 10 billion in assets through March, according to blockchain analytics platform Nansen.
Chapter 15 bankruptcy allows for cooperation between the international and U.S. judicial systems and usually occurs in an effort to protect the debtor’s assets.
The filing came hours after Voyager Digital suspended trading and withdrawals, citing unpaid loans to Three Arrows totaling $ 646 million. Voyager issued a Three Arrows notice of default on Monday.
On Wednesday, a court in the British Virgin Islands ordered the liquidation of the fund due to the inability to pay the debt. And the Singapore Monetary Authority on Thursday reprimanded Three Arrows for providing it with “false information” and making it “misleading”.
Prior to its insolvency, Three Arrows Capital was known for its numerous investments in crypto-related companies. The company was founded in 2012 by Su Zhu and Kyle Davies, and promoted positions in many of the largest crypto projects and companies: Bitcoin, Ethereum, Solana, Axie Infinity and BlockFi.
The company lost about $ 200 million when Do Kwon’s algorithmic stable currency destabilized and plummeted in value in May. BitMEX, FTX and Deribit have since liquidated 3AC positions.
With the sinking of Three Arrows, eyes are on Celsius, with similar problems, who is said to be preparing for his own bankruptcy filing.
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