A New York bankruptcy judge on Tuesday gave liquidators full control of Three Arrows Capital’s U.S. assets and authorized them to issue subpoenas to co-founders Su Zhu, Kyle Davies, and other parties with information about the Singapore-based crypto hedge fund.

The fund, often referred to as 3AC and which in April had $3 billion in assets under management, filed for bankruptcy on July 1. A few days earlier, it has been served with a notice of default from struggling crypto brokerage Voyager.

The liquidators in 3AC’s Chapter 15 proceeding, used to manage bankruptcy cases when creditors and debtors are not all in the same country, will be represented by attorney Adam Goldberg, of Latham and Watkins.

The judge’s order allows Goldberg to block the “transferring, encumbering, or otherwise disposing of” 3AC’s U.S.-based assets during the bankruptcy proceedings.

Three Arrows Capital Says Cooperation With Liquidators Met With 'Baiting'

Three Arrows Capital (3AC) co-founder Su Zhu broke a month-long silence today, taking to Twitter to post screenshots of a recent email from Advocatus Legal LLP, the law firm acting on behalf of 3AC, sent to legal representatives of the Singapore-based firm’s liquidators. One of the letters that have been made public accuses Russell Crumpler and Christopher Farmer, who were appointed by a British Virgin Islands court to serve as 3AC’s liquidators, of “baiting” both Su and Kyle Davies, the fund’s...

Goldberg said at the Tuesday hearing that liquidators are seeking information from “one or two dozen” crypto brokerages, banks and other financial institutions, several of which said they couldn’t cooperate until they’re served, according to a Law360 report.

Goldberg, as the foreign representative, can now immediately “take any action and perform any act necessary to implement and effectuate” the terms of the order. Those served with a subpoena have 14 days to comply.

 2022 Crypto Crash

Three Arrows Capital Office Abandoned, Founders Missing, Say Creditors

The founders of embattled crypto hedge fund Three Arrows Capital (3AC) are missing, and when court-appointed liquidators recently visited the firm’s Singapore office all they found was a locked door and a pile of old mail. In a July 8 filing with the U.S. Bankruptcy Court in New York’s Southern District, Russell Crumpler and Christopher Farmer, who were appointed by a British Virgin Islands court to serve as 3AC’s liquidators and wind down operations, reported that the whereabouts of Zhu Su and...

The order comes after Goldberg submitted a filing Friday to block the sale or transfer of 3AC’s assets.

In Goldberg’s filing with the U.S. Bankruptcy Court in New York’s Southern District on Friday, Russell Crumpler and Christopher Farmer, who were appointed by a British Virgin Islands court to serve as 3AC’s liquidators and wind down operations, reported that the whereabouts of Zhu Su and Kyle Davies “are currently unknown.”

There’s been mounting concern that 3AC will try to transfer or hide assets. Last month, the firm’s NFT arm, Starry Night Capital, started transferring NFTs out of its SuperRare wallet.

It was noted by Kyle Waters, a researcher at Coinmetrics, who said that the 70-piece NFT collection had at one time been worth $21 million.