Bloomberg: 3AC has filed for bankruptcy in the United States, appointing a trustee to handle cross-border bankruptcy.

According to Bloomberg, Three Arrows Capital, the prominent player in the cryptocurrency industry, has filed for Chapter 15 bankruptcy in the United States. Despite the liquidation taking place in the British Virgin Islands where 3AC is registered, this move is aimed at protecting its assets in the United States.

What is Chapter 15 Bankruptcy?

Chapter 15 of the United States Bankruptcy Code allows representatives of companies undergoing bankruptcy proceedings outside the United States to seek assistance from U.S. courts. This enables cooperation between U.S. courts, foreign courts, and other foreign authorities involved in cross-border bankruptcy cases.

3AC Seeks Asset Protection in the U.S.

Bloomberg reported that representatives of 3AC, represented by the law firm Latham & Watkins, filed for bankruptcy in New York. Utilizing Chapter 15 bankruptcy can prevent creditors from easily freezing the company's assets in the United States. Recently, there were rumors that 3AC had been ordered to liquidate by the British Virgin Islands court, and this initiative was led by exchanges Blockchain.com and Deribit. In a statement, Blockchain.com mentioned: "We believe that Three Arrows Capital deceived the crypto industry and intend to hold them accountable to the fullest extent permitted by law."

Recently, the Monetary Authority of Singapore (MAS) issued a formal reprimand against 3AC, an early registrant in Singapore under Three Arrows Capital, for managing funds beyond the permitted limits and stated that they will pursue accountability.