Crypto hedge fund Three Arrows Capital (3AC) is seeking protection from creditors in the US under chapter 15 of the US Bankruptcy Code, which allows foreign debtors to shield US assets, according to a court filing on Friday.
Singapore-based 3AC is one of the highest-profile investors hit by the sharp selloff in crypto markets and is being liquidated, Reuters reported on Wednesday, citing a person familiar with the matter.
Representatives for 3AC filed a petition in the US bankruptcy court for the southern district of New York on Friday, according to court documents.
On Thursday, Singapore’s financial regulator had accused embattled the fund of exceeding its assets threshold and providing false information.
Non US-companies use chapter 15 to block creditors who want to file lawsuits or tie up assets in the US. — Akriti Sharma, (c) 2022 Reuters