Cryptocurrency hedge fund bankruptcy

Voyager Digital suspends trading and withdrawals

Cryptocurrency hedge fund Three Arrows Capital has filed for Chapter 15 bankruptcy, a move to protect assets in the United States while the liquidation proceeds in the British Virgin Islands.

Court papers showed that representatives of Three Arrows filed a bankruptcy petition in New York yesterday, preventing Chapter 15 bankruptcy filings from creditors from confiscating the company’s assets in the United States.

A British Virgin Islands court ordered the liquidation of Three Arrows Capital earlier this week.

The fund, founded by former Credit Suisse traders Zhou Su and Kyle Davis, managed an estimated $10 billion in assets as of March, according to blockchain analytics firm Nansen.

In another context, Voyager Digital announced the temporary suspension of trading, withdrawals and deposits; Because of the ongoing crash in the cryptocurrency markets.

The cryptocurrency trading platform said, in a statement, that the process of suspending trading, withdrawals and deposits began at twelve noon New York time, and the decision also applies to the loyalty rewards program.

“It was a very difficult decision, but we believe it was the right decision given the current market conditions,” said Stephen Ehrlich, CEO of the platform.

The decision came just days after a Voyager Digital customer failed to make hundreds of millions of dollars in loan payments, sparking growing concerns about default contagion across the industry.

Bitcoin is down 70% compared to last November’s peak, in addition to some stablecoins losing correlation with assets, causing a wave of defaults and halting withdrawals from several platforms.

The President of El Salvador, Nayib Bukele, said that his country took advantage of the low price of Bitcoin and bought 80 Bitcoin at a price of 19,000 dollars per currency, saying in a tweet via his official account on Twitter that Bitcoin is the future, thank you for selling at a cheap price.

The president of El Salvador attached his tweet with screenshots of 40 bitcoin purchases made last Thursday, totaling about $1.52 million.

It should be noted that the last bitcoin purchase in El Salvador was when the Central American country acquired about 500 bitcoins with a total of $15.3 million, at a price of $30,744 each.

According to CoinDesk data based on announcements from the president of El Salvador, the country has lost about 55.03 percent of its bitcoin investment from September so far, with the country acquiring about 2,301 bitcoins totaling $103.9 million, but its portfolio currently stands at only about 46.6 million.

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