Crypto hedge fund Three Arrows Capital (3AC) filed for Chapter 15 bankruptcy in a federal bankruptcy court in the Southern District of New York on Friday, in hopes to shield its U.S. assets after a court in the British Virgin Islands reportedly ordered the firm into liquidation last week.
See related article: Three Arrows Capital lines up for liquidation
Chapter 15 legally protects U.S. assets of insolvent foreign debtors from creditors in the U.S.
The Monetary Authority of Singapore (MAS) reprimanded 3AC on Thursday for misleading information and exceeding assets under management limits.
3AC’s woes began to surface in May’s Terra crash, after buying US$200 million worth of LUNA tokens for Luna Foundation Guard’s US$1 billion raise in February, cofounder Kyle Davies told the Wall Street Journal.
See related article: MAS takes aim at Three Arrows Capital, does not impose penalty