According to a court filing on Friday, crypto hedge fund Three Arrows Capital (3AC) is seeking protection from creditors in the United States under Chapter 15 of the US Bankruptcy Code, which allows foreign debtors to shield US assets.
Singapore-based 3AC is one of the most high-profile investors affected by the sharp sell-off in the crypto markets and is being liquidated, Reuters reported on Wednesday, citing a person familiar with the matter.
Representatives of 3AC filed a petition Friday in the U.S. Bankruptcy Court for the Southern District of New York, according to court documents.
On Thursday, Singapore’s financial regulator accused the fund of exceeding its asset limit and providing false information.
Non-U.S. companies use Chapter 15 to block creditors who want to file suit or bind assets in the United States.