Crypto hedge fund Three Arrows files for Chapter 15 bankruptcy
Crypto hedge fund Three Arrows Capital (3AC) is seeking protection from creditors in the United States under Chapter 15 of the US bankruptcy code, which allows foreign debtors to protect US assets, according to a court filing released Friday.
Singapore-based 3AC is one of the biggest victims of the latest “crypto winter” so far. CNBC reported Wednesday that Three Arrows had gone into liquidation, citing a person with knowledge of the matter.
Representatives of 3AC filed a petition in the U.S. Bankruptcy Court for the Southern District of New York on Friday, according to court documents.
On Thursday, Singapore’s financial regulator had accused the beleaguered fund of exceeding its asset threshold and providing false information.
Non-US companies use Chapter 15 to block creditors who want to sue or tie up assets in the United States.
3AC, co-founded by Zhu Su and Kyle Davies, is one of the largest crypto hedge funds (which focus on investing in digital assets like cryptocurrencies) and is known for its high leverage bets. the sink. Zhu has extremely optimistic views on bitcoin.
But a crash in digital currency prices, which has seen billions of dollars disappear from the market in recent weeks, has hurt 3AC and exposed a liquidity crunch within the company.
—CNBC’s Arjun Kharpal contributed to this article.