Just weeks before filing for bankruptcy, crypto hedge fund Three Arrows Capital (3AC) sent lender Voyager Digital a one-page net asset value (NAV) statement, court documents filed Tuesday show. A single due-diligence call was conducted between the two firms. Voyager, which itself filed for bankruptcy in July 2022, reported a $654 million loan to 3AC that accounted for almost 58% of its loan portfolio.

The document dated May 13, 2022 gave Three Arrows Capital's NAV as just under $2.4 billion. The fund filed for Chapter 15 bankruptcy in New York on July 1.

The filings reveal the level of due diligence carried out by Voyager Digital with regard to Three Arrows Capital, whose failure sparked a wave of collapses among other crypto firms. Genesis Global Holdco reported that its Asia-Pacific unit had lent 3AC $2.4 billion in cash and digital assets. Crypto lender Celsius cited loans worth $75 million, and BlockFi also said it suffered “material losses” from the bankruptcy because 3AC was one of its largest borrowers.

(By Jamie Crawley)

Get the latest news here: Cointime channel — https://t.me/cointime_en