Three Arrows Capital, better known as 3AC, a cryptocurrency investing company, registered for Chapter 15 bankruptcy on July 1st, according to reports.
Although not surprising, the announcement marks the closure of a renowned, decade-old corporation that handled up to $10 billion in holdings as late as March, as per blockchain research portal Nansen.
Chapter 15 bankruptcy allows overseas and US judicial institutions to collaborate and is often sought to safeguard the debtor’s holdings.
The complaint came shortly following Voyager Digital banning the trade and transactions, claiming $646 million in outstanding debts to Three Arrows. On June 27th, Monday, Voyager served Three Arrows with a violation warning.
Series Of Events Before 3AC’s Bankruptcy Filing
On June 29th, Monday, a magistrate in the British Virgin Islands instructed that the fund should be dissolved. This order was issued due to its failure to repay debts.
Next, On June 30th, Thursday, the Monetary Authority of Singapore penalized Three Arrows for giving “incorrect facts” and “misleading.”
Three Arrows Capital was well-known for its numerous acquisitions in crypto acquired firms before collapsing. Su Zhu and Kyle Davies started the Three Arrow Capital in 2012, and it has holdings in several of the top crypto ventures and organizations, including Bitcoin, Ethereum, Solana, Axie Infinity, and BlockFi.
Do Kwon’s algorithmic stablecoin UST was disrupted and dropped in value in May. During this time the corporation lost over $200 million. 3AC’s stakes have subsequently been liquidated by BitMEX, FTX, and Deribit.
3AC Founder To Sell His Bungalow
On the contrary, 3AC co-founder Zhu Su is allegedly trying to sell his high level mansion in Singapore.
Zhu claimed to advocate a concept that the virtual currency economy was stepping into a “supercycle.” This phase is where the prices will tend to rise as adoption increases. However, his stance changed when the world’s largest currency, Bitcoin price hit the bottom.
Following the fall of Three Arrows, all attention is on Celsius. Celsius is believed to be planning for its upcoming bankruptcy petition.
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Source: https://coinpedia.org/news/crypto-hedge-fund-three-arrow-capital-files-for-bankruptcy-will-celsius-follow-the-suit/