Three Arrows

History

2022: Cryptocurrency fund files for bankruptcy

On July 1, 2022, Three Arrows, one of the largest cryptocurrency hedge funds, filed for bankruptcy. The corresponding application was filed in a court in New York. The fund has been operating since 2012, it was founded by ex-employees of the Swiss Credit Suisse Zhu Su and Kyle Davis, who has worked in an investment bank since 2012.

Three Arrows was one of the key players in the cryptocurrency market and was one of the most prominent crypto hedge funds that specialize in investing in digital assets such as cryptocurrencies. Three Arrows is known for its big-shoulder bets, and its bankruptcy has led to cryptocurrency companies actively revising their operations and tightening customer withdrawals. On June 30, 2022, Singapore's financial regulator accused the Three Arrows fund of exceeding the asset threshold and providing false information.

Cryptocurrency fund founded by immigrants from Credit Suisse with $10 billion in assets declared bankruptcy

The application was filed in accordance with Art. 15 of the US Bankruptcy Code on July 1, 2022 in the Southern District of New York, intended for foreign companies that want to protect the funds of American investors under their management from creditors.

{{quote 'The course of the most popular cryptocurrency falls against the background of the general sale of risky assets. It's about the lowest level since the end of 2020. Bitcoin's capitalization fell to below $425 billion, and the total capitalization of cryptocurrencies for the first time since February 2021 fell to below $1 trillion, said Su Zhu, CEO and founder of the Three Arrows hedge fund. }} By the beginning of 2022, Three Arrows had $10 billion in assets. But against the background of falling prices for digital currencies, the value of assets was rapidly declining. According to data for April 2022, the hedge fund has already reached $3 billion. For July 2022, through bankruptcy proceedings, the Three Arrows Foundation expects to save funds from American customers.^[1]

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