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3AC FILES FOR US BANKRUPTCY

3AC FILES FOR US BANKRUPTCY 

Crypto hedge fund Three Arrows Capital has filed for bankruptcy under Chapter 15 of the U.S. Criminal Code.


Three Arrows Capital is one of the latest major victims of the so-called "crypto winter". The digital ecosystem is plagued by both broad market volatility due to rising Federal Reserve interest rates and concerns about crypto currencies and firms. Bitcoin's BTCUSD, -0.12% dollar value fell by more than a third this month.


The Chapter 15 lawsuit was filed in Manhattan state court late Friday just days after the Three Arrows were thrown into debt in the British Virgin Islands, following allegations that they had failed to pay $ 80 million owed to Deriti, the Financial Times reported.


Three Arrows Capital worked as a fund manager in Singapore until last year, when it relocated to the British Virgin Islands, which is part of a plan to relocate its operations to Dubai.


The fund, set up by former Credit Suisse retailers Zhu Su and Kyle Davies, held an estimated $ 10 billion worth of assets recently in March, according to blockchain analytics company Nansen, reports Bloomberg.


Law firm Latham & Watkins represented the Three Arrows in the US collection. The case is being heard by Three Arrows Capital Ltd and Russell Crumpler, 22-10920, U.S. Court of Appeal. Of New York State (Manhattan).


Debt experts in Teneo, a British Virgin Islands-based consultant firm to eliminate the Three Arrows, have told a U.S. court that "a large number of debtors" are expected to file lawsuits against the hedge fund, the Financial Times reported.


As a sign of the Three Arrows' borrowing rate, a Toronto-based crypto lender Voyager Digital said by the end of June it could lose more than $ 650 million in loans it had made to a crypto investment company founded by Su Zhu and Kyle Davies.


Voyager late Friday said it was suspending withdrawals and trading in its area as it looked at "alternatives".




BlockFi, another major crypto lender, said on Friday it had saved about $ 80 million due to the collapse of the Three Arrows even after dismantling some of its positions.


BlockFi on Friday also announced an agreement in which FTX will provide new funding by repaying an option that allows crypto exchanges to buy a group up to $ 240 million.




Three Arrows are also facing legal tests in Singapore. The Monetary Authority of Singapore has accused the party of this week of providing false information and breach of property below management limits. Singapore officials have been investigating the Three Arrows for a year.

Source: yahoo



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