According to a report in Bloomberg, Crypto hedge fund Three Arrows Capital (3AC) has filed for Chapter 15 bankruptcy in New York.
The mega fund, founded by Zhu Su and Kyle Davies, managed approximately $10 billion in assets and was among crypto finance players. Its insolvency has forced major industry players to reshuffle operations and limit customer withdrawals amid a crypto selloff that seemed to catch plenty of mega-firms off guard.
Chapter 15 bankruptcy will permit the foreign firm to protect its stateside assets while the liquidation is carried out in the British Virgin Islands following a court order this week after 3AC defaulted on a $660 million loan to Voyager Digital. 3AC is based in Singapore.
The ongoing firm collapse is causing trouble for plenty of venture-backed crypto darlings. Earlier today, BlockFi announced a deal with FTX U.S. and noted that it had lost around $80 million from its dealing with 3AC