Three Arrows Capital Files for Bankruptcy in the US to Protect its Assets from Liquidators
Three Arrow Capital Bankruptcy
Modified Date:- Published Date:-Categories: Cryptocurrency
ThreeArrows Capital Files for Bankruptcy in the US to Protect its Assets fromLiquidators.
The financially embattled crypto hedge fund of ThreeArrows Capital has filed for Chapter 15 bankruptcy in New York. Accordingto a report by Bloomberg, the move will protect its US assets while liquidationis carried out in the British Virgin Islands, where a court gave the go-aheadfor Teneo Restructuring to carry out the process.
ThreeArrows Capital was founded by long-term friends Su Zhu and Kyle Davies. Theduo both studied at Columbia University before working briefly for CreditSuisse. They would go on to found Three Arrows Capital, estimated to manage asmuch as $10 billion in cryptocurrency assets at its peak.
The crypto hedge fund went on to invest in prominent cryptoprojects such as Avalance, Aave, BlockFi, Deribit, Balancer, Polkadot, Solana, Terra,and Near, to name a few.
However, Three Arrows Capital started facing financialdifficulties due to LUNA’s and UST’s collapse in early May. In mid-June, ThreeArrows Capital failed to meet some margin calls and was eventually liquidatedon several of its Bitcoin and Ethereum trading positions.
Additionally, several creditors, such as Voyager Digital,have since come knocking demanding that Three Arrows Capital repay its debts.This has thus resulted in the liquidation order by a British Virgin Islandscourt earlier this week.
The hedge fund’s co-founder has also been rumored to betrying to sell his $35 million Singapore mansion as a result of the ongoing financialturmoil facing Three Arrows Capital.At one time, Su Zhu had grabbed the cryptospotlight through his Bitcoin supercycle theory which forecasted that Bitcoin’svalue could continue rising to $2.5 million if it successfully captured asignificant portion of gold’s market share as a digital store of value.
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