Contact Information

Theodore Lowe, Ap #867-859
Sit Rd, Azusa New York

We Are Available 24/ 7. Call Now.

Cryptocurrency hedge fund Three Arrows Capital (3AC) has filed for bankruptcy protection in a New York court to protect the firm’s U.S. assets while it executes liquidation. Previously, Three Arrows Capital was ordered to liquidate by the British Virgin Islands court last week due to its inability to repay its debts .

“Bloomberg” reported that Three Arrows Capital filed for bankruptcy protection under Chapter 15 of the U.S. Bankruptcy Code, which is applicable to bankruptcy proceedings involving multiple countries and is usually filed to protect the assets of foreign debtors in the United States to avoid assets being confiscated by creditors or freeze.

Earlier, cryptocurrency exchange and cryptocurrency derivatives exchange Deribit were confirmed as creditors seeking liquidation from Three Arrows Capital.

“Following the dramatic volatility in the cryptocurrency market, the debtor’s business has collapsed,” the filing said, noting that Three Arrows’ financial woes and the lawsuit in the British Virgin Islands have been widely reported, and the outcome of the lawsuit is bound to have a global impact. Digital asset markets have an impact.

The news came just hours after digital asset brokerage Voyager Digital announced it was suspending user transactions and withdrawals, citing Three Arrows failing to meet its obligations to repay loans with $350 million USDC and 15,250 bitcoins . To this end, Voyager Digital has issued a notice of default to Three Arrows Capital .

According to blockchain analysis platform Nansen, although the results are not unexpected, looking back at March this year, Three Arrows Capital also managed as much as $10 billion in assets. This news is undoubtedly written for this well-known company with a history of ten years. Sad ending.

Three Arrows Capital is one of the large hedge funds focusing on cryptocurrencies. It is known in the currency circle for its high-leverage tactics. It has borrowed large amounts of money from many cryptocurrency companies such as BlockFi, Celsius, Babel Finance and Voyager Digital, but encountered market turmoil. The inability to repay has caused these platforms to suspend the withdrawal of assets one after another. As a result, the latest bankruptcy has sparked fears that it could have ripple effects across the industry.


Leave a Reply

Your email address will not be published. Required fields are marked *