Crypto investment firm Three Arrows Capital, aka 3AC, filed for Chapter 15 bankruptcy on Friday, Bloomberg has reported.
While not unexpected, the news brings an ignominious end to the storied decade-old firm, which managed $10 billion in assets as of March, according to blockchain analytics platform Nansen.
Chapter 15 bankruptcy allows for cooperation between the international and US court systems and is usually filed in an attempt 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 Three Arrows a default notice on Monday.
On Wednesday, a court in the British Virgin Islands ordered the fund to be liquidated due to its inability to pay a debt. And Singapore’s monetary authority reprimanded Three Arrows on Thursday for providing it with “false information” and for being “misleading”.
Prior to its bankruptcy filing, Three Arrows Capital was known for its numerous investments in crypto-related ventures. The company was founded in 2012 by Su Ju and Kyle Davis and advertises positions in many of the biggest crypto projects and companies: Bitcoin, Ethereum, Solana, Axie Infinity and BlockFi.
The firm lost an estimated $200 million when Do Kwon’s algorithmic stablecoin UST destabilized and collapsed in value in May. BitMEX, FTX and Deribit have since liquidated 3AC’s positions.
With the collapse of Three Arrows, all eyes are on the also-embattled Celsius, which is said to be preparing to file for bankruptcy.
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