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Three Arrows Capital filed a bankruptcy application
The Head Fund Three Arrows Capital (3ac) filed a bankruptcy petition to the New York court. This is reported by Bloomberg.
According to the Agency, Chapter 15 of the United States Code on Bankruptcy may protect 3ac from confiscation of assets in the territory of the States during the liquidation of the British Virgin Islands.
Three Arrows Capital sent the relevant documents after the announcement of the cryptocurrency broker Voyager Digital on the suspension of trade and withdrawal of funds from July 1 21:00 (Kyiv/MSC).
“This was an extremely difficult decision, but we consider it right in the current market conditions. It will give us extra time to study strategic alternatives, ”said CEO Voyager Stephen Erlich.
On June 27, Voyager Digital sent 3AC notice of non-fulfillment of obligations due to non-payment of a loan. The cryptorrhiner gave the hedge fund a loan for 15,250 BTC (about $ 294 million at the rate at the time of writing) and 350 million USDCs.
On June 24, Voyager Digital asked to close part of the debt of 25 million USDCs, and then demanded to pay off the entire loan on BTC and stablecoins until June 27.
On June 23, the cryptorrhiner reduced the daily limit to withdraw funds from $ 25,000 to $ 10,000 amid problems with 3ac. To protect customer assets, the company agreed with the Alameda Research Sam Bankman-Fried about a loan of 200 million USDC and opening a renewable credit line for 15,000 BTC.
According to Nansen, founded by Su Zhu and Kyle Davis in 2012 Three Arrows Capital managed assets worth about $ 10 billion. Against the background of the collapse of the cryptocurrency market and Terra collapse, information about 3C insolvency has appeared.
Recall that the 8 Blocks Capital trading company accused the hedge fund of using clients for covering marin-collars.
According to some reports, the cryptocurrency platforms of BitMex, FTX and Deribit eliminated 3AC positions due to the inability of the latter to fulfill marginal requirements.
Singapore monetary control, where the headquarters of the hedge fund was registered, announced https://gagarin.news/ Three Arrows Capital reprimand for providing false information and exceeding the permitted threshold of assets under the control.
BlockChain’s exchanger and cryptocurrency wallets.COM and Deribit platform demanded the elimination of 3ac.
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