The Singapore High Court on Monday approved a petition from advisory firm Teneo to recognize the liquidation order issued to crypto hedge fund Three Arrows Capital (3AC), according to a Bloomberg report citing unnamed people with knowledge of the matter.
Teneo, which was appointed by a British Virgin Islands court to liquidate 3AC in June, lacked the legal basis to request access to any financial records the fund kept locally.
With the petition granted, the liquidators are now free to do so.
This means Teneo will be able to investigate what assets held in Singapore, including bank accounts, properties, cryptocurrencies, non-fungible tokens (NFTs), and stakes in companies, can be tied to Three Arrows Capital.
A spokesperson for the Singapore High Court declined to comment on the report.
Three Arrows Capital Files For Bankruptcy: Report
Crypto investment firm Three Arrows Capital, also known as 3AC, filed for Chapter 15 bankruptcy Friday, Bloomberg has reported. While not unexpected, the news brings an ignominious end to the prominent, decade-old firm that managed as much as $10 billion in assets as recently as March, according to blockchain analytics platform Nansen. Chapter 15 bankruptcy enables cooperation between international and U.S. court systems and is typically filed in an effort to protect debtor’s assets. Cred Is Fi...
Three Arrow Capital's collapse
Over the past few years, Three Arrows had established itself as one of the bigger names in the crypto industry, holding positions in many of the largest projects and companies.
The Singapore-based firm filed for Chapter 15 bankruptcy at the end of June following a wave of liquidations that swept across the sector in the wake of the Terra ecosystem collapse in May and the bankruptcy of crypto broker Voyager, which had unpaid loans to 3AC totaling $646 million.
Per an earlier Bloomberg report, Teneo has so far gained control of at least $40 million of Three Arrow’s assets. This, however, represents only a tiny fraction of the $3.5 billion the firm owes to 25 different companies, including $2.3 billion to crypto trading and lending company Genesis.
Three Arrows Capital Founders Cite 3 Key Crypto Trades That Blew Up the Firm
The two co-founders of the recently bankrupt crypto hedge fund Three Arrows Capital (3AC), Su Zhu and Kyle Davies, have broken their silence in a new interview with Bloomberg, published today. Zhu and Davies attribute 3AC’s rapid collapse to over-optimistic speculations on their part, with Zhu saying that they “positioned [themselves] for a kind of market that didn’t end up happening.” Davies echoed: “We believed in everything to the fullest.” In their lengthy postmortem, Zhu said it was “not...
Last month, the lawyers for Teneo also said Three Arrow co-founders Su Zhu and Kyle Davies hadn’t been cooperating on the process. However, the hedge fund hit back at those claims, adding that both Zhu and Davies and their families received “threats of physical violence.”
On July 12, Zhu took to Twitter to post screenshots of emails from Advocatus Legal LLP, the law firm acting on behalf of 3AC, sent to legal representatives of Teneo.
One of those letters accused the liquidators of “baiting” both Su and Davies.
