Crypto investment company Three Arrows Capital filed for Chapter 15 Bankruptcy. The legal filing enables a foreign debtor to file for bankruptcy in the US court system. Businesses or people having assets in more than one country use Chapter 15 for insolvencies.
A few days earlier, a court in the BVI ordered the hedge fund to liquidate assets. Other than that, Singapore’s Central Bank reprimanded 3AC for providing false reports and surpassing the permitted amount of. managed funds.
Three Arrows Capital was founded in 2012 in Singapore by Su Zhu and Kyle Davies. The company found itself in a crisis when the crypto prices fell and the Terra ecosystem collapsed. In a created situation, the hedge fund couldn't meet lenders margin calls. According to a report by Bloomberg, Zhu Su, the CEO of the company plans to sell his $35 M Singapore house.