ONE OF THE LARGEST CRYPTOCURRENCY HEDGE FUNDS 3AC HAS GONE BANKRUPT

Following reports that Three Arrows Capital Ltd. (3AC) received an order from the Monetary Authority of Singapore (MAS) for "providing false information" and "misleading", and one of its subsidiaries was in the process of liquidation by the decision of the British Virgin Islands Court (BVI), 3AC filed bankruptcy application. This happened on the basis of section 15 of the US Insolvency Code, which regulates cross-border bankruptcy.

3AC wants bankruptcy to be recognized in the US to protect the hedge fund's assets located in America. 3AC's bankruptcy application was filed in the Southern District of New York in Manhattan, with the company's head office located in Singapore. But the company's co-founder Su Joo said last April that 3AC was planning to move to Dubai.

According to court documents, the cryptocurrency options and futures exchange Deribit said that Three Arrows was unable to return $80 million because the hedge fund ran into financial problems.

It is worth noting that the liquidation, and now the bankruptcy of the fund's structures, is taking place against the background of the fact that popular cryptocurrencies (Bitcoin and Ethereum) have fallen by almost 70 percent from record highs amid the economic collapse.

The company's insolvency forced major players in the cryptocurrency industry to restructure their work and limit the withdrawal of customer funds due to the sale of cryptocurrencies, which seems to have taken many large companies by surprise.

The largest fund, founded by Credit Suisse traders Jung Su and Kyle Davis, once managed assets worth about $ 10 billion.

After the collapse of Three Arrows, investors' attention turned to the equally problematic company Celsius, which is also preparing to file for its own bankruptcy.