Three Arrows Capital files for Chapter 15 bankruptcy

Crypto hedge fund Three Arrows Funds (3AC) filed for Chapter 15 individual bankruptcy in a federal personal bankruptcy court docket in the Southern District of New York on Friday, in hopes to shield its U.S. belongings soon after a court in the British Virgin Islands purchased the organization into liquidation past 7 days.

See associated write-up: Three Arrows Cash strains up for liquidation

Speedy specifics

• Chapter 15 legally guards U.S. assets of insolvent foreign debtors from collectors in the U.S.
• A British Virgin Islands courtroom reportedly purchased the liquidation immediately after Singapore-founded 3AC defaulted on a US$670 million personal loan from digital asset brokerage Voyager Digital past Monday.
• The Monetary Authority of Singapore (MAS) reprimanded 3AC on Thursday for deceptive data and exceeding belongings beneath management restrictions.
• 3AC’s woes began to area in May’s Terra crash, right after buying US$200 million value of LUNA tokens for Luna Foundation Guard’s US$1 billion elevate in February, cofounder Kyle Davies informed the Wall Road Journal.
• There are issues of a broader contagion in the sector as numerous firms, including BlockFi, experienced financial loans to 3AC. 

See relevant short article: MAS usually takes aim at Three Arrows Funds, does not impose penalty