Three Arrows Capital filed for Chapter 15 bankruptcy in New York a few days after the liquidation of a troubled crypto hedge fund in the British Virgin Islands began.
Liquidation and subsequent bankruptcy filings will be a relentless tooth Cryptography A market crash involving lenders, exchanges and investors. Popular crypto tokens such as Bitcoin and Ether have fallen by about 70% since hitting record highs in Brulan last year.
Advisory company Teneo has been designated as a co-liquidator Hedge fundExecutives Russell Crumpler and Christopher Farmer have been appointed to oversee the liquidation.
Also this week, the Monetary Authority of Singapore Rebuke Three arrows to provide false information and infringe on assets under management. The fund was first managed in Singapore before migrating to BVI in September.
Singapore’s financial services regulator added, “We are assessing whether there have been further violations of MAS regulations by Three Arrows Capital.”
Cryptocurrency options and futures exchange Deribit claimed that Three Arrows couldn’t repay $ 80 million because of financial difficulties plagued hedge funds, according to a court document seen by Financial Times.
$ 80 million consisted of 1,300 Bitcoins and 15,000 ethers and was worth about $ 42 million. The loan also consisted of a negative asset value of $ 37.1 million.
“The company is in bankruptcy because it may not be able to repay its debt when it is due,” Deribit said.
In a document filed with the New York Federal Bankruptcy Court, Three Arrows said:[b]y Foreign representative submitting a petition to initiate the proceedings in this Chapter 15. [Teneo] Strive to continue the active efforts of individual creditors to seize assets, maintain the status quo and give opportunities to foreign representatives [to] Stabilize the debtor’s property, protect the debtor’s property,
Claims on the debtor, its property, and its property, including the cause of the proceeding. “
BlockFi and Genesis, a crypto financial services group, also liquidated some of their Three Arrows positions last month as they were unable to handle margin calls.