Leading crypto hedge fund Three Arrows Capital files for bankruptcy

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• Jul 2, 2022 | Dhupali Das

Reportedly, the Monetary Authority of Singapore criticized Three Arrows this week for giving incorrect information and exceeding an asset under the management threshold.

Digital Desk: Three Arrows Capital (3AC), a top crypto hedge fund, has filed for bankruptcy in the United States just days after its liquidation began in the British Virgin Islands.

As the economy collapsed, popular crypto tokens like Bitcoin and Ethereum fell by roughly 70% from their record highs, prompting the liquidation and subsequent Chapter 15 bankruptcy in New York.

As per court records obtained by the Financial Times, crypto options and futures exchange "Deribit claimed Three Arrows failed to repay $80 million, as financial difficulties had plagued the hedge fund."

Deribit asserted, "the corporation is or is likely to become unable to pay its debts as they become due, and is therefore insolvent."

According to the report, the Monetary Authority of Singapore criticized Three Arrows this week for giving incorrect information and exceeding an asset under the management threshold.

The huge fund, founded by Credit Suisse traders Zhu Su and Kyle Davies, once handled an estimated $10 billion in assets.

According to The Verge, big industry players have been compelled by its insolvency to reorganize operations and restrict customer withdrawals during a crypto selloff that appeared to catch many large corporations off guard.

BlockFi, a troubled cryptocurrency loan company, signed a partnership with top crypto exchange FTX US on Friday after reporting losses of about $80 million from its dealings with Singapore-based 3AC.

While the liquidation is being done in the British Virgin Islands, Chapter 15 bankruptcy will allow the foreign company to safeguard its assets in the United States.