Cryptocurrency hedge fund Three Arrows Capital has filed for Chapter 15 bankruptcy.
Embattled crypto hedge fund Three Arrows Capital has filed for bankruptcy in court for the Southern District of New York.
Chapter 15 is a tool that allows foreign borrowers to conduct their financial transactions in the US.
The firm has been unable to repay loans, although it has borrowed from several companies, including BlockFi, Celsius, Babel Finance, and Voyager Digital. The crisis in the industry deepened further when lending companies stopped withdrawals to address the liquidity shortage.
On June 29, a court in the British Virgin Islands ordered the liquidation of the embattled hedge fund.
According to Bloomberg, the Chapter 15 filing would allow the British Virgin Islands to retain their US assets despite the liquidation decision.
Earlier this week, the Monetary Authority of Singapore also accused Three Arrows Capital of lying about its assets.
It turned out that the co-founder of the company, Zhu Su, also sold his luxury house in Singapore.
