The Three Arrows Capital [3AC] crisis sees no end even after the haber of insolvency was confirmed. The Singapore-based crypto hedge fund has dosyalanmış for Chapter 15 Bankruptcy Protection as per the Financial Times. However, the leak has spread to other crypto institutions and the crypto market continues to bleed in these circumstances.
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3AC is seeking protection from creditors in the United States under Chapter 15 of the U.S. Bankruptcy Code. The code allows foreign debtors to shield U.S. assets, according to the court filing on 1 July. Thus, 3AC representatives dosyalanmış a petition in the U.S. Bankruptcy Court in the Southern District of New York on 1 July, as per court documents.
Singapore’s central bank, the Monetary Authority of Singapore (MAS) called out the crisis-hit hedge fund. The country’s central bank reprimanded 3AC for allegedly “providing false information.” Furthermore, the bank has listed multiple allegations against the crypto hedge fund.
Additionally, 3AC has also breached local legislation by operating with assets over $250 million. The threshold exceeded between July and September 2020 and again between the end of 2020 and August 2021. In addition to the aforementioned information, MAS also claimed that the crypto company failed to inform the relevant authorities about changing roles of shareholders and directors. Finally, they concluded that further breaches will be covered in an ongoing investigation.
Trouble in both towns
Exposure to Three Arrows Capital has been unkind to the crypto world. The leak from the company has spread into major institutions, such as Voyager Digital. In a tweet by the famous Twitter handle CryptoWhale, it was found that the “Voyager stock was 99.9%” after news of the exposure.
BREAKING: Crypto brokerage Voyager Digital has issued a notice of default to Three Arrows Capital (3AC) after the hedge fund failed to make the required payments on its loans of 15,250 #bitcoin and $350 million in USDC.
Voyager’s stock is now down -99.9%
- CryptoWhale (@CryptoWhale) Haziran 27, 2022
Moreover, Voyager suspended withdrawals, trading, and deposits on all of its accounts as of 1 July. In a blog yazısı, the institution confirmed this “difficult but necessary decision.” Furthermore, Voyager CEO Stephen Ehrlich made a statement that,
"Bu karar bize, birlikte oluşturduğumuz Voyager platformunun değerini korurken, çeşitli ilgili taraflarla stratejik alternatifleri keşfetmeye devam etmek için ek zaman veriyor. Uygun zamanda ek bilgi sağlayacağız."
Source: https://ambcrypto.com/did-3ac-refuse-to-go-down-amid-institutional-crisis-heres-the-latest-update/