According to recent court filings, troubled crypto hedge fund Three Arrows Capital Ltd, aka 3AC, has filed for bankruptcy. According to court documents, 3AC appears to be seeking ancillary Chapter 15 proceedings to prevent liquidators and creditors from seizing the company’s U.S. assets.
3AC Files for Bankruptcy – “Tremors” from Crypto Market Fall says “Continue to Reverberate, Says JPMorgan Analyst”
Three Arrows Capital Limited (3AC) was reprimanded by the Monetary Authority of Singapore (MAS) and faced court-ordered liquidation stemming from the British Virgin Islands (BVI), but 3AC reportedly filed for bankruptcy.
Court filings were reviewed by Jeremy Hill of Bloomberg and publishedby the author. report summarized in According to Hill, 3AC filed for Chapter 15 bankruptcy, which can give rise to proceedings protecting bankrupt companies in multiple countries. Basically, 3AC wants to be allowed to file bankruptcy in the U.S. to protect the assets of its hedge funds in the U.S.
“Representatives of Three Arrows filed for bankruptcy in New York on Friday, court papers show,” Hill explained Friday. The law firmis 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 headquarters are in Singapore, but co-founder Su Zhu said last April that the company plans to move to Dubai; for the BVI court order against 3AC advisory firm; Teneois conducting liquidation proceedings in the same jurisdiction.
According to JPMorgan analystNikolaos Panigirtzoglou, 3AC’s $1 billion failure “suggests that the tremors from the crypto market decline this year continue to reverberate,” Panigirtzoglou went on to say in his investor note that there are many indicators that highlight deleveraged positions.
The JPMorgan executive added, “Indicators like our net leverage metrics suggest that deleveraging is already well underway. The fact is that crypto entities with stronger balance sheets are now stepping in to curb contagion.”
3AC’s bankruptcy follows Voyager Digital, which suspended withdrawals on Friday, along with transactions, deposits, and loyalty rewards. Voyager debit cards are also affected, with Voyager customers unable to use cards issued by the company
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