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Three Arrows Liquidators Obtained Singapore Court Permission to Investigate Crypto Fund

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Three Arrows Liquidators Obtained Singapore Court Permission to Investigate Crypto Fund

Three Arrows Capital’s liquidators have won a major court ruling in Singapore that should give them a broader perspective on the bankrupt crypto hedge fund’s residual assets, people familiar with the matter revealed on Wednesday.

Bloomberg reports, citing people with knowledge of the situation, that the Singapore High Court on Tuesday approved the petition of Teneo, the appointed liquidator of Three Arrows Capital.

This indicates that the court now recognizes the liquidation judgment originally filed in the British Virgin Islands.

Teneo investigates Three Arrows liquidation proceedings and secures its global properties. Court approval allows Teneo to hold all financial records, cryptocurrencies, bank accounts, real estate, and company equity interests.

Three Arrows founders can’t sell their assets

This prohibits Su Zhu and Kyle Davies, the founders of Three Arrows, from selling their assets in Singapore. Earlier in July, Zhu reportedly tried to sell one of his properties for $35 million.

Reportedly, Zhu owns two luxury homes in Singapore. In April, Zhu announced plans to move its headquarters to Dubai. The fund was registered in the British Virgin Islands.

Three Arrows, often known as 3AC, had become one of the biggest names in the crypto industry over the past few years, maintaining roles in many top crypto industry projects and companies. .

Three Arrows founders Su Zhu and Kyle Davies. Image: Coincu News.

The Singapore-based company filed for Chapter 15 bankruptcy at the end of June, following a wave of sales that swept through the industry following the implosion of the Terra ecosystem in May and the bankruptcy of crypto broker Voyager. According to sources, Voyager owed Three Arrows $647 million in delinquent loans.

Teneo obtained possession of at least $40 million of 3AC’s assets upon the July release of a 1,157-page court document, Bloomberg reports. This is a small portion of the projected $2.8 billion in creditor claims.

The founders of 3AC regret the disappearance of the company?

Zhu and Davies broke their silence shortly after the court document was released. The two founders of the crypto hedge fund lamented the fund’s failure as very “regrettable”.

A representative from Singapore’s High Court declined to comment on the 3AC court case, saying instead, “We cannot comment on ongoing cases.”

The crypto market crashed, with Bitcoin and Ethereum, the two major cryptocurrencies, slipping below $20,000 and $1,000, respectively. As of this writing, Bitcoin is trading at $21,476, down 10.5% from the previous week.

Ethereum is currently trading at $1,650, down 12.4% over the past seven days. On Wednesday, the total crypto market cap fell from $2 trillion to less than $1 trillion.

BTC total market cap at $412 billion on the daily chart | Source: TradingView.com

Featured image from Coin Edition, chart from TradingView.com

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