October 6, 2022

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Three Arrows Capital files for Chapter 15 bankruptcy

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Crypto hedge fund A few Arrows Money (3AC) filed for Chapter 15 individual bankruptcy in a federal bankruptcy court in the Southern District of New York on Friday, in hopes to defend its U.S. property immediately after a court docket in the British Virgin Islands reportedly requested the organization into liquidation previous 7 days.

See linked report: A few Arrows Capital strains up for liquidation

Rapid information

  • Chapter 15 legally protects U.S. belongings of insolvent international debtors from collectors in the U.S.
  • A British Virgin Islands court reportedly purchased the liquidation soon after Singapore-established 3AC defaulted on a US$670 million financial loan from digital asset brokerage Voyager Digital last Monday.
  • The Monetary Authority of Singapore (MAS) reprimanded 3AC on Thursday for misleading info and exceeding belongings below management limitations.
  • 3AC’s woes started to surface area in May’s Terra crash, just after acquiring US$200 million worthy of of LUNA tokens for Luna Basis Guard’s US$1 billion increase in February, cofounder Kyle Davies told the Wall Street Journal.
  • There are considerations of a broader contagion in the sector as several companies, together with BlockFi, had loans to 3AC. 

See related short article: MAS usually takes intention at Three Arrows Capital, does not impose penalty

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