CoinDesk reported that a court in the British Virgin Islands earlier this week ordered the liquidation of the local branch of Three Arrows Capital. After weeks of speculation that it was mired in insolvency, the crypto hedge fund finally filed for Chapter 15 of the U.S. Bankruptcy Code late Friday in the Court for the Southern District of New York. Liquidation protection.
CoinDesk pointed out that Chapter 15 of the US Bankruptcy Code mainly involves foreign investment processes. A court in the British Virgin Islands has ordered the liquidation of Three Arrows Capital's local branches.
Many have speculated that Friday's filing may be related to this, and that US-based company Teneo Restructuring has been tasked with overseeing the liquidation.
It is reported that Three Arrows Capital raised a large amount of funds from multiple crypto lending platforms including BlockFi, Celsius, Babel Finance and Voyager Digital, but eventually fell into trouble of being unable to pay.
As lender , the company hopes to suspend withdrawals or extend credit lines to get through this difficult period, but Chapter11dockets.com was the first to expose the bankruptcy news.
Then Bloomberg added: Three Arrows Capital filed under Chapter 15 of the U.S. Bankruptcy Code. In this way, even if its assets in the British Virgin Islands are liquidated, the court can still ensure the company's assets in the United States.
After the debtor’s business has collapsed following wild swings in the cryptocurrency market, Three Arrows Capital still wants to maintain the status quo while ensuring that individual creditors are aggressive in their efforts to seize assets.
As of press time, Three Arrows Capital failed to respond to requests for comment from foreign media. In the end, no matter what, given that this matter has been widely reported, the outcome of the lawsuit will definitely have a profound impact on the global digital asset market.
