Three Arrows Capital crypto investment firm also known as 3AC, that defaulted loan worth more than $670 million, has filed for bankruptcy. This comes just hours after Voyager Digital suspended services, including trading and withdrawals.
A court in the British Virgin Islands ordered 3AC, on Wednesday, to liquidate as the company was unable to pay off debt. Moreover, the Monetary Authority of Singapore also reprimanded the Fund for providing false information and misleading.
Three Arrows Capital, the 10-year-old firm that managed billions of dollars worth of assets as recently as March, was highly regarded for its numerous investments in crypto-related ventures. It had garnered positions in many of crypto’s largest projects and companies like Bitcoin, Ethereum, Solana, Axie Infinity, and BlockFi. The company came to an abrupt halt when it lost $200 million in Do Kwon’s algorithmic stablecoin UST crash in May.
According to court documents, representatives from Latham & Watkins filed the bankruptcy petition in New York. It stated that the debtor’s business (Three Arrows Capital) collapsed in the wake of extreme fluctuations in cryptocurrency markets. The representatives also highlighted that they are not aware of the current location of Zhu Su and Kyle Davies – the co-founders of 3AC. Its believed that they have left for Singapore but their location remains unknown.
It should be noted that 3AC’s collapse has caused trouble for other venture-backed crypto firms like Voyager Digital.