Three Arrows Capital Filed For Bankruptcy: Report

Three Arrows Capital filed for bankruptcy as the bear market mauled another crypto company so let’s have a closer look in today’s crypto news.

Crypto investment company Three Arrows Capital filed for bankruptcy Chapter 15 on Friday and while not unexpected, the news brought a stressful end to the prominent company that managed up to $10 billion in assets. Chapter 15 bankruptcy enabled cooperation between the international and US court systems and it is filed in an effort to protect the debtor’s assets. The filing emerged a few hours after Voyager suspended the tradign and withdrawals due to unpaid loans to three Arrows that hit $656 million. Voyager issued Three Arrows a notice of default as of Monday.

The filing emerged right after Voyager suspended trading and withdrawals due to unpaid loans to Three Arrows Capital and the court in the British Virgin Islands ordered the fund to liquidate due to the inability to pay off debt. The Singaporean regulatory also reprimanded Three Arrows for providing it with false information and being misleading. Before the insolvency, Three Arrows Capital was known for its other crypto-related ventures the company was founded in 2012 by Kyle Davies and Su Zhu and had positions in Bitcoin, Etheruem, Axie Infinity, BlockFi, and Solana.

The company lost up to $200 million when Do Kwon’s Terra UST stablecoin crashed back in May. BitMex, Deribit, and FTX also liquidated the 3AC positions. With the collapse of Three Arrows, the eyes turn to troubled Celsius which is rumored to be preparing for its own bankruptcy filing.

As recently reported, According to reports, Three Arrows Capital has been ordered into liquidation after the market downturn, by a court in the British Virgin Islands. Citing sources familiar with the matter, the report read that the liquidation will be a huge moment in the current unveiling of the crypto sector which has grown at a fast speed in recent years. At the time of writing, the immediate financial implications for creditors of 3AC are still unclear. One of the creditors is Voyager Digital and the company previously disclosed exposure to the extent of $500 million to Three Arrows Capital and stated that it is unable to assess the amount that will be able to recover.