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. 3AC 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 U.S. and noted that it had lost around $80 million from its dealings with 3AC.