Three Arrows Capital could have more assets that are sold to creditors if the Singapore High Court approves the liquidator’s request. The liquidation of Three Arrows Capital (3AC), has taken a new direction.
Teneo has been appointed court-appointed liquidator for insolvent crypto hedge fund Three Arrows Capital (3AC), according to The Straits Times.
If Teneo’s move is successful, it will allow the liquidators to continue 3AC liquidation in the hedge fund’s native city-state.
Teneo could subpoena 3AC cofounders Su Zhu or Kyle Davies, who have been missing from last week.
Teneo, if the High Court agrees to a settlement, will be better able to secure 3AC assets and fulfill the obligations of its creditors.
WongPartnership lawyers might also claim that 3AC’s collapse resulted from mismanagement by Zhu or Davies.
If the authorities agree, it would speed up the asset seizure. Decrypt has yet to receive a response from Teneo.
Rumours of 3AC’s bankruptcy began to swirl in the middle of April. reports revealed that Voyager Digital, a crypto broker, had sent 3AC a notice for failing repay $673 million of loans from 15,250 Bitcoin and $350,000,000 in USDC.
The crypto fund was ordered by a British Virgin Islands court to liquidate at the end June. Teneo, a management consulting firm, was also appointed to assist with the insolvency proceedings.
3AC filed for Chapter 15 bankruptcy in July. This was done to protect 3AC’s assets in the U.S. while liquidation takes place in BVI.
After a notice was issued by 3AC to that it had provided false information, the Monetary Authority of Singapore (MAS), added fuel to the fire.
According to the MAS, the crypto fund, a favorite of the last bull market, had reportedly created an entity in BVI and “novated its management to an unrelated offshore entity.”
The regulator stated that this representation was misleading because Su Zhu (one of the fund’s founders) was a shareholder in the BVI-based entity.
3AC was also reprimanded by the MAS for not informing authorities about “changes to the directorships or shareholdings of its Directors” and for exceeding the permissible $250M assets under management (AUM), between July 2020 and September 2020 and November 2020 and August 2021.
Teneo also saw the founders vanish, and found , a locked door, and old mail when they visited the Singapore office.