Crypto hedge fund Three Arrows Capital (3AC) has filed for Chapter 15 bankruptcy in New York, according to a report in Bloomberg.
The mega fund, founded by Credit Suisse traders Zhu Su and Kyle Davies, has at one time managed an estimated $10 billion in assets and is a mainstay among crypto finance players. Its default has forced major players in the industry to reshuffle operations and limit customer withdrawals amid a crypto sell-off that seems to have caught many major players off guard.
Chapter 15 bankruptcy will allow the offshore company to protect its assets while liquidation is made in the British Virgin Islands after a court order this week after 3AC defaulted on a $660 million loan to Voyager Digital. 3AC is headquartered in Singapore.
The continued downfall of the company is causing trouble for many lovers of the venture-backed cryptocurrency. Earlier today, BlockFi announced a deal with FTX US and noted that it lost about $80 million from transactions with 3AC.