Hedge fund Three Arrows Capital (3AC) has recently filed for bankruptcy in a New York court, Bloomberg has reported.
According to the publication, Chapter 15 of the US Bankruptcy Code may protect 3AC from forfeiture of US assets during its liquidation in the British Virgin Islands.
Three Arrows Capital has sent the relevant documents after crypto broker Voyager Digital announced the suspension of trading and withdrawal of funds from the platform from July 1.
Voyager CEO Stephen Ehrlich said:
“It was an extremely difficult decision, but we believe it was the right one in the current market conditions. It will give us more time to explore strategic alternatives.”
Voyager Digital sent 3AC on June 27 a notice of default due to non-payment of a loan. The crypto broker has loaned the hedge fund 15,250 BTC and 350 million USDC.