The liquidators of Three Arrows Capital were granted an important court ruling in Singapore, which is expected to offer them with a broader perspective into the bankrupt crypto hedge fund’s residual assets, persons with knowledge of the situation disclosed on Wednesday.
Bloomberg reports, citing persons with knowledge of the situation, that the Singapore High Court approved the motion of Teneo, the appointed liquidator of Three Arrows Capital, on Tuesday.
This indicates that the court now acknowledges the liquidation judgement that was initially filed in the British Virgin Islands.
Teneo is investigating Three Arrows’ liquidation procedure and securing its global properties. The court’s approval permits Teneo to hold all financial records, cryptocurrencies, bank accounts, real estate, and company stakes.
Three Arrows Founders Can’t Sell Assets
This forbids Su Zhu and Kyle Davies, the founders of Three Arrows, from selling their assets in Singapore. Earlier in July, Zhu allegedly attempted to sell one of his properties for $35 million.
Reports have it that Zhu owns two luxury homes in Singapore. In April, Zhu announced plans to relocate 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 business over the last few years, maintaining roles in many of the top projects and enterprises in the crypto industry.
Three Arrows founders Su Zhu and Kyle Davies. Image: Coincu News.
The Singapore-headquartered company filed for Chapter 15 bankruptcy at the end of June, following a flurry of sell offs that surged across the industry following the May implosion of the Terra ecosystem and the bankruptcy of crypto broker Voyager. According to sources, Voyager owed Three Arrows $647 million in overdue loans.
Teneo has obtained possession of at least $40 million of 3AC’s assets as of July’s release of a 1,157-page court document, Bloomberg reports. This represents a small portion of the projected $2.8 billion in creditor claims.
3AC Founders ‘Regretting’ The Company’s Demise?
Zhu and Davies broke their silence shortly after the release of the court document. The two founders of the crypto hedge fund lamented the fund’s failure as very “regrettable.”
A representative for the Singapore High Court declined to comment on the 3AC court case, stating instead: “We cannot comment on pending cases.”
The crypto market crumbled, with Bitcoin and Ethereum, the two leading cryptocurrencies, sliding below $20,000 and $1,000, respectively. As of this writing, Bitcoin is trading at $21,476, a decrease of 10.5% over the previous week.
Ethereum is currently trading at $1,650, a decrease of 12.4% in the last seven days. As of Wednesday, the total crypto market capitalization fell from $2 trillion to below $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