Kyle Davies and Zhu Su are reported to have left Singapore, according to representatives of Three Arrows Capital (3AC).
According to Bloomberg, crypto investment firm Three Arrows Capital, 3AC, filed for Chapter 15 bankruptcy on Friday.
This news has come as no surprise, but it marks the end of an influential, decade-old firm that managed assets worth $10 billion as recently as March, according to the blockchain analytics platform Nansen.
Chapter 15 Bakruptcy
Due to an inability to pay off debts, a British Virgin Island court ordered the fund to be liquidated on Wednesday. On Thursday, the Monetary Authority of Singapore reprimanded Three Arrows for providing it with “false information” and being “misleading.”
3AC representatives filed a bankruptcy petition in the U.S. Bankruptcy Court for the Southern District of New York on 1 July, according to court records.
Latham & Watkins represents Three Arrows in its bankruptcy in the US.
The case is Three Arrows Capital Ltd and Russell Crumpler, 22-10920, U.S. Bankruptcy Court for the Southern District of New York (Manhattan).
3AC’s collapse is one of other higher profile cryptocurrency companies to have collapsed due to pressure and liquidity issues stemming from the sell-off in the market.
Chapter 15 is used by foreign companies, based outside the United States, to obtain bankruptcy protection by preventing creditors from taking legal action.
Established by Zhu and Davies in 2012, Three Arrows specializes in hedge funds and venture capital and takes highly leveraged risks. Axie Infinity a play-to-earn project and DeFi giant Aave are among 3AC’s investments.
Voyager Digital Halts Withdrawals
In a press release, Voyager Digital CEO Stephen Ehrlich stated that the company has temporarily suspended withdrawals, deposits, and trading due to “current market conditions.”
Three Arrows Capital was served with a default notice from Voyager Digital on Monday.
“This was a tremendously difficult decision, but we believe it is the right one given current market conditions,” said Ehrlich. “This decision gives us additional time to continue exploring strategic alternatives with various interested parties while preserving the value of the Voyager platform we have built together.”