Hedge fund Three Arrows Capital (3AC) has filed for bankruptcy in New York court. It is reported by Bloomberg.

According to the agency, Section 15 of the US Bankruptcy Code can protect 3AC from confiscation of US assets during liquidation in the British Virgin Islands.

Three Arrows Capital has submitted relevant documents after cryptocurrency broker Voyager Digital announced that it is suspending trading and withdrawals from July 1 at 9:00 PM (Kyiv/Moscow time).

“It was an extremely difficult decision, but we believe it was the right decision in the current market conditions. “This will give us more time to explore strategic alternatives,” said Steven Ehrlich, Voyager CEO.

On June 27, Voyager Digital sent 3AC a notice of default for non-payment of a loan. The crypto broker has lent 15,250 BTC (around $294 million at the time of writing) and 350 million USDC to the hedge fund.

On June 24, Voyager Digital requested to settle some of the 25 million USDC debt, and then requested that the entire loan in BTC and stablecoins be repaid by June 27.

On June 23, the crypto broker reduced its daily withdrawal limit from $25,000 to $10,000 due to issues with 3AC. To protect clients’ assets, the company agreed with Sam Bankman-Fried’s Alameda Research on a 200 million USDC loan and a 15,000 BTC revolving line of credit.

Founded by Su Zhu and Kyle Davis in 2012, Three Arrows Capital has managed nearly $10 billion in assets, according to Nansen.

Recall that trading firm 8 Blocks Capital accused the hedge fund of using client funds to cover margin calls.

According to some reports, cryptocurrency platforms BitMEX, FTX and Deribit have liquidated their 3AC positions due to the latter’s failure to meet margin requirements.

The Monetary Authority of Singapore, where the hedge fund is headquartered, issued a reprimand to Three Arrows Capital for providing false information and exceeding the allowable threshold of assets under management.

Cryptocurrency wallet exchange and provider Blockchain.com and the Deribit platform have requested the liquidation of 3AC.

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