3AC Liquidators Aim To Get Approval From High Court To Secure S’pore Assets
The liquidators of the former cryptocurrency hedge fund that has filed for bankruptcy, Three Arrows Capital, also known as 3AC, received approval from the High Court of Singapore, to investigate and preserve the assets of the insolvent crypto hedge fund in the city-state, according to a report from the Straits Times.
Last month, the British Virgin Islands (BVI) court appointed two employees of New York-based financial advisory firm Teneo as the joint liquidators for 3AC. Furthermore, the liquidators hired WongPartnership, a Singapore-based law firm, to plead with the High Court and persuade it to recognise BVI’s liquidation order.
If the liquidators are successfully able to get approval from the High Court, they will be able to continue the liquidation of 3AC assets in Singapore and will also give them the authority to issue a subpoena against 3AC’s co-founders, Su Zhu and Kyle Davies.
Interestingly, the founders of 3AC, Zhu and Davies, are missing and nowhere to be found. As reported in a previous report from BitcoinWisdom, the two founders have failed to comply with authorities. The two were present in an initial Zoom meeting, according to the lawyers representing the creditors, but they had shut off their video and voice. Only their lawyers were speaking.
The approval from the High Court will give the liquidators a position of strength and will speed up the process of liquidation, as well as make the crypto hedge fund meet its liabilities faster. The Straits Times said that lawyers will argue in court that the funds were mismanaged by Zhu and Davies, who are now allegedly on the run.
Back in March 2022, the firm was handling around $10 billion in assets under management (AUM), and when the price of Bitcoin, the leading cryptocurrency, and other tokens started falling, accelerated by the collapse of the LUNA-UST model, 3AC started experiencing issues.
Rumors about 3AC’s insolvency began circulating on crypto Twitter in mid-June, and the firm’s founders remained silent, adding fuel to the fire.The firm started selling large positions, including $40 million in Lido staked Ethereum (stETH), which confirmed the rumours of the firm’s insolvency.
3AC filed for Chapter 15 bankruptcy on July 1 in an attempt to protect the firm’s US assets.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
