Three Arrows Capital, better known as 3AC, a cryptocurrency investment firm, filed for Chapter 15 bankruptcy on July 1, according to reports.
While not surprising, the announcement marks the closure of a renowned, decade-old company that managed up to $10 billion in assets through March, according to blockchain research portal Nansen. .
Bankruptcy under Chapter 15 allows foreign and US legal institutions to work together and is often called upon to protect the debtor’s assets.
The complaint came shortly after Voyager Digital banned the trade and transactions, claiming $646 million in unpaid debt from Three Arrows. On June 27, Monday, Voyager served Three Arrows with a warning of violation.
Series of events before 3AC’s bankruptcy filing
On June 29, Monday, a magistrate in the British Virgin Islands ordered the fund dissolved. This order was issued due to his inability to repay his debts.
Then, on June 30, Thursday, the Monetary Authority of Singapore sanctioned Three Arrows for giving “incorrect” and “misleading facts.”
Three Arrows Capital was well known for its many acquisitions in crypto-acquired companies before collapsing. Su Zhu and Kyle Davies started Three Arrow Capital in 2012, and it has stakes in several of the top crypto companies and organizations, including Bitcoin, Ethereum, Solana, Axie Infinity, and BlockFi.
Do Kwon’s UST algorithmic stablecoin was disrupted and lost value in May. During that time, the company lost over $200 million. 3AC’s stakes were subsequently liquidated by BitMEX, FTX and Deribit.
The founder of 3AC will sell his bungalow
On the contrary, 3AC co-founder Zhu Su is reportedly trying to sell his high profile mansion in Singapore.
Zhu claimed to champion a concept that the virtual currency economy was entering a “supercycle”. It is at this phase that prices will tend to rise as adoption increases. However, his stance changed when the biggest currency in the world, the price of Bitcoin, bottomed out.
After the fall of the Three Arrows, all attention is turned to Celsius. Celsius is believed to be planning its next bankruptcy petition.