Crypto Turmoil: 3AC Files for Bankruptcy, FTX and BlockFi Agree, Suspensions at Voyager
Multiple important news reached the market as another week of harsh crypto winter neared its end, providing more clarity on where some major industry players stand.
First, the troubled crypto hedge fund Three Arrows Capital (3AC) is now seeking protection from creditors in the US under Chapter 15 of the US Bankruptcy Code, which allows foreign debtors to shield US assets, per Reuters. As reported, a British Virgin Islands court ordered the liquidation of 3AC earlier this week. Meanwhile, troubled crypto lender BlockFi said it signed definitive agreements, subject to shareholder approval, with the FTX US crypto exchange for:
"We have not drawn on this credit facility to date and have continued to operate all our products and services normally. In fact, we raised interest rates, effective today, across the board for major assets," Flori Marquez and Zac Prince, BlockFi co-founders, said in a statement.
They admitted that due to their loan to 3AC, the lender experienced USD 80m in losses, and "this represents the full extent of the impact to BlockFi from 3AC." Also, these losses "will be part of 3AC’s ongoing bankruptcy case(s)."Meanwhile, another crypto platform that suffered from 3AC, Voyager Digital, said it is "temporarily" suspending trading, deposits, withdrawals, and loyalty rewards."This decision gives us additional time to continue exploring strategic alternatives with various interested parties while preserving the value of the Voyager platform we have built together. We will provide additional information at the appropriate time," Stephen Ehrlich, CEO of Voyager, was quoted as saying in the announcement.
As reported, the company's exposure to 3AC consists of BTC 15,250 (USD 293) and USDC 350m, while they also entered
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