Crypto mega hedge fund Three Arrows Capital has reportedly filed for bankruptcy in New York – TechCrunch

Crypto hedge fund Three Arrows Capital (3AC) has filed for Chapter 15 bankruptcy in New York, according to a Bloomberg report.

The mega-fund, founded by Credit Suisse traders Zhu Su and Kyle Davies, at one point managed around $10 billion in assets and was a linchpin among crypto-finance players. Its insolvency forced major industry players to reshuffle operations and limit customer withdrawals amid a crypto selloff that seemed to catch many mega-corporations off guard.

Chapter 15 bankruptcy will allow overseas firm to protect US assets while liquidation is carried out in the British Virgin Islands following a court order this week after 3AC defaulted on a loan $660 million to Voyager Digital. 3AC is based in Singapore.

The ongoing corporate collapse is causing problems for many venture capitalist-backed crypto darlings. Earlier today, BlockFi announced a deal with FTX US and noted that it had lost around $80 million from its relationship with 3AC.

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