Three Arrows Capital Files For Bankruptcy in New York
Table of contents
Filing Chapter 15 Bankruptcy
On Wednesday, a court in the British Virgin Islands ordered 3AC to liquidate due to its inability to pay off debt. A day later, Singapore's central bank the Monetary Authority of Singapore reprimanded the crypto investment firm for providing it with "false information" and being "misleading."
According to court documents, Three Arrows Capital is now seeking the protection of its US-based assets amid the BVI court proceedings. The Chapter 15 filing will let the firm protect its US assets even as its BVI assets are liquidated.
Three Arrows said in its petition:
"The Debtor faces litigation and other demands on payment that it cannot meet, and the Debtor is at significant risk of the diminution in value of its assets without immediate relief imposing a stay of actions by creditors."
The filing added:
"The Debtor's financial distress and the BVI Proceeding have been widely reported and the result of the proceeding has implications on the global digital asset markets."
Chapter 15 bankruptcy is meant for insolvency proceedings that involve more than one country and is typically filed in an effort to protect debtor's assets.
The firm lost roughly $200 million when Do Kwon's algorithmic stablecoin UST destabilized and plunged in value in May.
