Crypto hedge fund Three Arrows files for bankruptcy

Illustration by Alex Castro / The Verge

The hedge fund Three Arrows Capital filed for Chapter 15 bankruptcy in order to protect its US assets from other countries. Representatives for the Singapore-based company made the filing in a Southern District New York court on Friday to protect the US assets of insolvent foreign debtors.

3AC had $10 billion in assets as recently as March, but lost $3 billion in April. 3AC is one of the firms that has experienced a turn in fortunes as a result of the winter that has brought down stable coins.

According to reports earlier this week, 3AC failed to pay a $670 million loan, which resulted in all trades, deposits, and withdrawals being halted. According to Sky News, a court in the British Virgin Islands has ordered 3AC to liquidate and that the firm is working with a business consulting company.

The company lost out on a $200 million investment after the crash of Luna and its sister coin TerraUSD. They told the WSJ that they were still optimistic about the future of the digital currency.