The Three Arrows Capital (3AC) liquidation process has taken a new turn.

The court-appointed liquidator of insolvent crypto hedge fund Three Arrows Capital (3AC), Teneo, has hired a Singapore law firm WongPartnership LLP to convince the country’s High Court to recognize the liquidation order issued to 3AC last month by the British Virgin Islands (BVI), according to local news outlet The Straits Times.  

Should Teneo’s move be successful, it would enable the liquidators to continue the 3AC liquidation process in the hedge fund’s native city-state. 


In addition, Teneo could also subpoena 3AC co-founders Su Zhu and Kyle Davies, who have been missing since last week

Should the High Court play ball, Teneo will be in a stronger position to secure 3AC’s assets and meet the bankrupt firm’s obligations to its various creditors. 

WongPartnership lawyers may also argue that 3AC’s collapse was due to mismanagement on the part of Zhu and Davies. 

Should the authorities concur, this would expedite the asset seizure. Teneo has not yet responded to Decrypt's inquiries on the matter.

Three Arrows Capital insolvency

Rumors of 3AC’s insolvency first swirled in the middle of last month, with reports then emerging that crypto broker Voyager Digital had served 3AC with a default notice for failing to repay some of its $673 million debt from loans of 15,250 Bitcoin and $350 million in USDC.


At the end of June, the crypto fund was ordered to liquidate by a court in the British Virgin Islands (BVI), and the management consulting company Teneo was appointed to assist in the insolvency proceedings.

3AC filed for Chapter 15 bankruptcy at the beginning of July, a move calculated to protect 3AC’s U.S. assets while the liquidation happens in BVI.

The Monetary Authority of Singapore (MAS) added fuel to the flame, after issuing a notice that 3AC provided the regulator with "false information."

The crypto fund, a darling of the last bull run, had reportedly opened an entity in the BVI and, according to the MAS, "novated the management of its fund to an unrelated offshore entity." 

However, the regulator said that "this representation was misleading" because Su Zhu, one of the fund's founders, was a shareholder in this BVI-based entity. 

The MAS also reprimanded 3AC for failing to notify the authorities about "changes in the directorships and shareholdings of its directors," as well as for exceeding the company’s permissible $250 million assets under management (AUM) limit between July 2020 to September 2020, and between November 2020 to August 2021. 

In addition to both founders disappearing, when Teneo visited the firm’s Singapore office, all they found was a locked door and a pile of old mail.

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