Crypto hedge fund Three Arrows Capital has filed for Chapter 15 bankruptcy in the U.S. Bankruptcy Court of Southern District of New York, Bloomberg reported.
A Chapter 15 bankruptcy is applicable when the insolvency case involves debtors, assets, claimants, and other parties involving more than one country.
Three Arrows is based out of Singapore and is founded by Credit Suisse traders Zhu Su and Kyle Davies. At one point, it reportedly managed $10 billion in assets and is a key financial intermediary for crypto players.
Related Link: Three Arrows Co-Founder Gives Pace To Insolvency Rumors: 'Fully Committed To Working This Out'
The filing done on Friday will prevent creditors from seizing the company's assets in the U.S. Earlier this week, the British Virgin Islands began liquidation proceedings on a court order after Three Arrows defaulted on a $660 million loan to Voyager Capital.
The predicament follows the sharp sell-off in cryptocurrencies, which is continuing unabated.
3AC was also pulled up by Singapore's financial regulator for exceeding its asset threshold and providing false information, according to Reuters.
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