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 (), 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 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.
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.