Crypto hedge fund Three Arrows files for Chapter 15 bankruptcy
(Reuters) – Crypto hedge fund Three Arrows Capital (3AC) is in search of safety from collectors in the USA beneath Chapter 15 of the U.S. Chapter Code, which permits overseas debtors to defend U.S. belongings, in accordance with a court docket submitting on Friday.
Singapore-based 3AC is likely one of the highest-profile buyers hit by the sharp sell-off in crypto markets and is being liquidated, Reuters reported on Wednesday, citing an individual accustomed to the matter.
Representatives for 3AC filed a petition within the U.S. Chapter Court docket for the Southern District of New York on Friday, in accordance with court docket paperwork.
On Thursday, Singapore’s monetary regulator had accused embattled the fund of exceeding its belongings threshold and offering false info.
Non U.S.-companies use Chapter 15 to dam collectors who need to file lawsuits or tie up belongings in the USA.
(Reporting by Akriti Sharma in Bengaluru; Enhancing by Leslie Adler and Kenneth Maxwell)
