Crypto investment firm Three Arrows Capital, also known as 3AC, filed for Chapter 15 Bankruptcy Friday, Bloomberg has reported.
While not unexpected, the news brings an ignominious end to the prominent, decade-old firm that managed as much as $10 billion in assets as recently as March, according to blockchain analytics platform Nansen.
Chapter 15 bankruptcy enables cooperation between international and U.S. court systems and is typically filed in an effort to protect debtor’s assets.
The filing emerged hours after Voyager Digital suspended trading and withdrawals, citing unpaid loans to Three Arrows totalling $646 million. Voyager issued Three Arrows a notice of default on Monday.
On Wednesday, a court in the British Virgin Islands ordered the fund to liquidate due to an inability to pay off debt. And the Monetary Authority of Singapore reprimanded Three Arrows on Thursday for providing it with “false information” and being “misleading.”
Prior to its insolvency, Three Arrows Capital was known for its many investments in crypto-related ventures. The company was founded in 2012 by Su Zhu and Kyle Davies, and touted positions in many of crypto’s largest projects and companies: Bitcoin, Ethereum, Solana, Axie Infinity, and BlockFi.
The firm lost roughly $200 million when Do Kwon’s algorithmic stablecoin UST destabilized and plunged in value in May. BitMEX, FTX, and Deribit have since liquidated 3AC’s positions.