Cryptocurrency hedge fund Three Arrows Capital (3AC), registered in Singapore, declared bankruptcy on July 2. The application was filed in a New York court in accordance with Article 15 of the US Bankruptcy Code for foreign companies that want to protect the funds of American investors under their management from creditors.
Last week, the Court of the Virgin Islands (Great Britain) issued a decision that awarded the Singapore company Three Arrows Capital (3AC) the status of an illiquid organization. The document will allow the start of the liquidation procedure of the fund's assets.
Three Arrows Capital was founded in 2012. Against the background of a large-scale downturn in the market this year, the organization was unable to meet the demands of its creditors. Last year, it managed assets worth10 billion USD, by April 2022 this amount had decreased to 3 billion USD and continued to decline.
On June 27, the American cryptocurrency company Voyager Digital LLC issued a notice of default of the cryptocurrency fund Three Arrows Capital (3AC) for failure to make the necessary loan payments. In total, 3AS received loans in Voyager for 15.2 thousand BTC and 350 million USDC.