(July 2): Crypto hedge fund Three Arrows Capital has filed for Chapter 15 bankruptcy, a move that protects its US assets while a liquidation is carried out in the British Virgin Islands.
Representatives for Three Arrows filed the bankruptcy petition in New York on Friday, court papers show. Chapter 15 bankruptcy filings stop creditors from seizing a company’s assets in the US.
A British Virgin Islands court ordered the liquidation of Three Arrows Capital earlier this week. The fund, founded by former Credit Suisse traders Zhu Su and Kyle Davies, managed an estimated US$10 billion of assets as recently as March, according to blockchain analytics firm Nansen.
The law firm Latham & Watkins is representing Three Arrows in the US bankruptcy.
The case is Three Arrows Capital Ltd and Russell Crumpler, 22-10920, US Bankruptcy Court for the Southern District of New York (Manhattan).