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Three Arrows Capital Files for Bankruptcy in New York
Summary: According to Bloomberg, Three Arrows Capital, a crypto hedge fund, filed for Chapter 15 bankruptcy in the Southern District of New York late Friday after weeks of speculation that it was functionally insolvent. Chapter 15 bankruptcy enables cooperation between international and U.S. court systems and is typically filed in an effort to protect debtor’s assets. A ...
According to Bloomberg, Three Arrows Capital, a crypto hedge fund, filed for Chapter 15 bankruptcy in the Southern District of New York late Friday after weeks of speculation that it was functionally insolvent.
Chapter 15 bankruptcy enables cooperation between international and U.S. court systems and is typically filed in an effort to protect debtor’s assets.
A court in the British Virgin Islands previously ordered Three Arrows' local branch to enter into liquidation, indicating that Friday's filing is likely tied to this. U.S.-based firm Teneo Restructuring has been tapped to oversee the liquidations.
The firm borrowed large amounts of funds from several crypto lenders, including BlockFi, Celsius, Babel Finance and Voyager Digital, but was unable to pay. The lenders halted withdrawals or needed credit lines extended to weather the storm.
By Amy Liu
Tags: bankruptcy,Three Arrows Capital
Link: Three Arrows Capital Files for Bankruptcy in New York [Copy]
