A crypto company from the United States, Three Arrows Capital (3AC) officially went bankrupt after CEO Su Zhu suddenly disappeared from social media and deleted a number of crypto information on his account.
To note, 3AC is one of the largest crypto hedge fund companies managing around US$10 billion in funds when their venture led the crypto line.
The company also has a portfolio in a number of crypto projects including Aave, Avalanche, Polkadot, Solana, Terra and others.
The bankruptcy of 3 AC is bad news for the crypto market after the previous Celsius Network experienced a similar problem and the case of the fall in the value of Terra LUNA.
Citing information provided by Ethereum World News, 3AC has declared bankruptcy to avoid the liquidation of its assets by the British Virgin Islands court.
The filing also comes a week after the court ordered 3AC to be liquidated. The collapse of Terra’s value was the main reason for 3AC to lose their assets until they were completely unable to survive.
Last June, they failed to cover several margin call positions, eventually forcing the company to liquidate their Bitcoin (BTC) and Ether (ETH) holdings.
Regarding crypto lending, 3AC has defaulted on its debt to Voyager Digital, which was the forerunner to the liquidation order from the Virgin Islands court.
Blockchain Media reports, during the first six months of 2022, the crypto industry really went through a bleak period with a number of problems. As a result, the crypto market is starting to be abandoned by investors.
However, investors are claimed to still consider crypto as one of the best investment choices while waiting for the US central bank’s policies to trigger risk appetite for investors.