Report: Embattled Crypto Hedge Fund Three Arrows Capital Files for Chapter 15 Bankruptcy
The troubled crypto hedge fund Three Arrows Capital Ltd., otherwise known as 3AC, has filed for bankruptcy according to recent court filings. The court papers show 3AC is aiming for an ancillary Chapter 15 proceeding so liquidators and creditors cannot seize the firm’s U.S. assets. 3AC Files for Bankruptcy — ‘Tremors’ From the Crypto Market Fall ‘Continue to Reverberate,’ Says JPMorgan Analyst
Following the reports that Three Arrows Capital Ltd.(3AC) was reprimanded by the Monetary Authority of Singapore (MAS) and faced liquidation from a court order stemming from the British Virgin Islands (BVI), 3AC has reportedly filed for bankruptcy.
Court filings were seen by Bloomberg’s Jeremy Hill and the author published a reportthat summarized the situation. Hill says that 3AC has filed for a Chapter 15 bankruptcy, which allows proceedings to occur and protect insolvent firms in more than one country. Essentially, 3AC wants the bankruptcy recognized in the U.S., in order to protect the hedge fund’s assets located in America.
“Representatives for Three Arrows filed the bankruptcy petition in New York on Friday, court papers show,” Hill explained on Friday. The law firm Latham & Watkins is representing Three Arrows in the U.S. bankruptcy [case],” the reporter added.
3AC’s bankruptcy case was filed in the Southern District of New York in Manhattan. 3AC’s main headquarters are located in Singapore but the co-founder Su Zhu said last April it planned to move to Dubai. As far as the BVI court order against 3AC, the advisory firm Teneo is handling the liquidation proceedings in that jurisdiction.
Accordingto JPMorgan analyst Nikolaos Panigirtzoglou, 3AC’s billion-dollar failure “suggests that the tremors from this year’s crypto market fall continue to reverberate.” Panigirtzoglou continued to say in his investor’s note that there’s many indicators highlighting deleveraged positions.
The JPMorgan executive added that “Indicators like our Net Leverage metric suggest that deleveraging is already well advanced. The fact that crypto entities with the stronger balance sheets are currently stepping in to help contain contagion.”
The 3AC bankruptcy follows Voyager Digital pausing withdrawals on Friday, alongside trading, deposits, and loyalty rewards. Voyager’s debit card was also impacted and Voyager customers are unable to use the cards issued by the company. Tags in this story 3AC, 3AC hedge fund, Bankruptcy, Bankruptcy petition, Chapter 15, crypto hedge fund, former Credit Suisse traders, Insolvency, insolvent, Kyle Davies, Latham & Watkins, Liquidations, MAS, Monetary Authority of Singapore, NYC, report, Su Zhu, Three Arrows Capital, Three Arrows Capital (3AC)
What do you think about 3AC filing for bankruptcy? Let us know what you think about this subject in the comments section below. Jamie Redman
Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,700 articles for Bitcoin.com News about the disruptive protocols emerging today. Study: AUM of Crypto Investment Products at Record Lows in June, Trust Products Garner Lowest Total Since December 2020 NEWS | 18 hours ago TSX-Listed Voyager Digital "Temporarily" Suspends Trading, Deposits, and Withdrawals NEWS | 1 day ago
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