Three Arrows Capital, a troubled cryptocurrency investment company, applies for Phase 15 bankruptcy.

bankruptcy

According to recent court documents, the embattled cryptocurrency hedge firm Three Arrows Capital Ltd., also known as 3AC, has filed for bankruptcy. According to court documents, 3AC is looking for an ancillary Chapter 15 process so that creditors and liquidators cannot seize the company’s assets in the United States.

Tremors from the cryptocurrency market fall “Continue to Reverberate,” according to 3AC’s bankruptcy filing. JPMorgan Analyst claims

Three Arrows Capital Ltd. (3AC) has purportedly filed for bankruptcy following reports that it was admonished by the Monetary Authority of Singapore (MAS) and threatened with liquidation due to a court order originating from the British Virgin Islands (BVI).

Jeremy Hill of Bloomberg saw court documents, and he wrote a report summarising the circumstances. According to Hill, 3AC has filed for Chapter 15 bankruptcy, which permits proceedings to take place and protect insolvent businesses across many nations. In order to safeguard the American assets owned by the hedge fund, 3AC essentially wants the bankruptcy to be recognized in the country.

According to court documents, representatives for Three Arrows filed the bankruptcy filing in New York on Friday, according to Hill on Friday. The legal team Latham & Watkins is defending Three Arrows in the bankruptcy [case] in the United States, the reporter continued.

Insolvency proceedings for 3AC were started in Manhattan’s Southern District of New York. Although the primary offices of 3AC are currently in Singapore, co-founder Su Zhu announced in April that the company intended to relocate there. Regarding the BVI court decision against 3AC, the liquidation processes are being handled there by the advising company Teneo.

The failure of 3AC, which cost $1 billion, “suggests that the tremors from this year’s crypto market meltdown continue to resonate,” says JPMorgan analyst Nikolaos Panigirtzoglou. According to Panigirtzoglou’s investor’s note, there are numerous indicators that point to deleveraged positions.

“Indicators like our Net Leverage indicator show that deleveraging is already well progressed,” the JPMorgan CEO continued. the fact that stronger crypto entities are currently stepping in to help restrict the spread of infection.”

Following Voyager Digital’s Friday suspension of trading, deposits, and loyalty awards, 3AC filed for bankruptcy. Voyager clients are unable to use the company-issued cards since Voyager’s debit card was also affected.

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