THREE ARROWS CAPITAL FILES UNDER THE CHAPTER 15 OF THE U.S. BANKRUPTCY CODE TO PROTECT ASSETS!
According to a court document filed on Friday, crypto hedge fund Three Arrows Capital (3AC) is looking for protection from American creditors under Chapter 15 of the U.S. Bankruptcy Code, which enables foreign debtors to protect U.S. assets. Less than a week after being ordered into liquidation by a British Virgin Islands court.
3AC, based in Singapore, is one of the most high-profile cryptocurrency firms to have collapsed under pressure and faced liquidity issues due to the recent market sell-off. Foreign companies outside the United States use Chapter 15 to obtain bankruptcy protection by preventing creditors from taking legal action.
While blockchain analytics firm Nansen claims that the Crypto Hedge Fund 3AC had $10 billion in assets as recently as April, the petition claims the company had only $3 billion at the time.
Schoolmates Zhu and Davies formed Three Arrows in 2012; it manages crypto assets, hedge funds, and venture capital and is renowned for its highly leveraged investments. According to its website, 3AC has invested in play-to-earn project Axie Infinity and DeFi initiatives, including Aave and Lido.