Three Arrows Capital (3AC) Is Officially Declared Bankrupt

The curtain has fallen on Three Arrows Capital (3AC).

The curtain has fallen for Three Arrows Capital (3AC). The company has filed for bankruptcy with the court in New York. This confirms the long-standing rumors about the well-known hedge fund.

In the run-up to the case, a court in the British Virgin Islands ordered Three Arrows Capital (3AC) to liquidate its assets. The 3AC case is emblematic of Bitcoin’s current crash and the ripple it’s causing. 3AC is one of the largest hedge funds in the sector. According to unconfirmed sources, 3AC allegedly used massive leverage. Notably during the chaos around Terra (LUNA) and Lido Staked Ether (stETH), the firm suffered huge losses.

Last week, crypto exchange Voyager reported a payment default of $670 million by 3AC. There is still no trace of founders Kyle Davies and Su Zhu. The latter is a prominent influencer in the space and now has more than 500,000 followers on Twitter. Due to conflicting statements, market watchers are already talking about possible market manipulation.

Additionally, the company has several subsidiaries registered through vague structures and tax havens like the Cayman Islands. A Coindesk investigation shows that 3AC allegedly ran its own trading desk in the tax haven with Tai Ping Shan Capital (TPS).

The spicy part is that TPS Capital continues its activities despite the insolvency proceedings.

Meanwhile, Singapore authorities are also investigating the hedge fund. According to the 2020 annual report, 3AC managed only tens of millions of USD, not the rumored billions.