The US Securities and Exchange Commission (SEC) alongside the Commodity Futures Trading Commission (CFTC) are investigating the notorious hedge fund Three Arrows Capital (3AC) over possible violation of rules, Bloomberg has learned, citing sources close to the agencies.
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The report says the SEC and the CFTC are looking into whether 3AC violated rules by misleading investors about its balance sheet and offering services without proper registration. The 3AC's whereabouts remain unknown so far.
Earlier in July, Three Arrows Capital filed a petition under chapter 15 of the US Bankruptcy Code. The law firm Latham & Watkins — which represents the Singapore-based fund — filed the petition in the US Bankruptcy Court for the Southern District of New York.
According to a tweet posted by an anonymous creditor @DrSoldmanGachs, the fund's list of creditors includes such giants as BlockFi, Celsius Network, BitGo, Algorand, CoinList, Galaxy Digital, DCG and many others. In total, 3AC reportedly owes its creditors a whooping $2.8 billion.
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