The crypto hedge fund Three Arrows reports bankruptcy

Three Arrows Capital registered bankruptcy in New York according to Chapter 15, days after the liquidation of the struck crypto hedge fund on the British Virgin Islands started.

The liquidation and the subsequent bankruptcy application are carried out in the run-up to a relentless crypto market crash that has recorded lenders, stock exchanges and investors. Popular crypto tokens like Bitcoin and Ether have fallen by around 70 percent since they reached an all-time high last year.

The consulting company Teneo was appointed the common liquidator of the hedge fund, with the managers Russell Crumpler and Christopher Farmer being commissioned to monitor the liquidation.

The Monetary Authority of Singapore Three Arrows also complained this week because of the provision of incorrect information and exceeding an asset under management threshold. The fund was initially managed in Singapore before it was moved to the British Virgin Islands in September.

The Singapore financial supervisory authority added that it "checks whether there are further violations of Three Arrows Capital against the MAS regulations".

According to court documents that the Financial Times were presented, the cryptooption and appointment exchange Deribit claimed that Three Arrows could not repay $ 80 million because the hedge fund was plagued by financial problems.

The $ 80 million consisted of 1,300 Bitcoin and 15,000 ether, which had a value of around $ 42 million. The loan also consisted of negative assets of $ 37.1 million

Deribit had said, "the company is or will probably not be able to pay its debts when due, and is therefore insolvent".

In the papers submitted to the New York Federal Inclusion Court, Three Arrows said: "[B] Y Submission of the application for the initiation of this chapter 15-fall, the foreign representatives try to continue active efforts by individual believers, to confiscate assets and to receive the status quo and to give foreign representatives a chance Stabilize, to preserve the debtor's assets and to carry out a complete investigation
of the debtor, claim against his estate and his assets, including the reasons for complaints ”.

The crypto finance service groups Blockfi and Genesis also liquidated some of the positions of Three Arrows last month after it was unable to meet additional claims.