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, at one time managed an estimated $10 billion in assets and was a linchpin among crypto finance players. Its insolvency has forced major industry players to reshuffle operations and limit customer withdrawals amid a crypto selloff that seemed to catch plenty of mega firms off-guard.
Chapter 15 bankruptcy will allow the foreign firm to protect its stateside assets while the liquidation is carried out in the British Virgin Islands following a court order this week after 3AC defaulted on a $660 million loan to Voyager Digital. The firm is based in Singapore.
The firm’s ongoing collapse is causing trouble for plenty of venture-backed crypto darlings. Earlier today, BlockFi announced a deal with FTX US and noted that it had lost around $80 million from its dealings with 3AC.