Three Arrows Capital (3AC) Liquidators Authorized To Launch Probe By Singapore Court
The High Court of Singapore has given the green light to proceed with the liquidation order against Three Arrows Capital (3AC). The order was initially filed in the British Virgin Islands. Teneo, the advisory company appointed by the court, now will be able to investigate the funds that Three Arrows Capital (3AC) has in Singapore.
Three Arrows Capital’s liquidators secure a key court decision in Singapore that may give them greater insight into the collapsed crypto hedge fund’s remaining assets in a major jurisdiction, sources say https://t.co/ub6AA0Int8
— Bloomberg Crypto (@crypto) August 24, 2022
Crumpler and Farmer Are Not Going To Let 3AC Slide
Crumpler and Farmer, the two liquidators, have been playing cat and mouse with Su Zhu and Kyle Davies for quite some time. The first attempt to get in touch with Three Arrows Capital (3AC) was highlighted in an abandoned office with old mail piled up. This has resulted in Teneo writing an affidavit that’s longer than Pinocchio’s nose (1100+ pages) on how the founders “refused to meaningfully engage” with the liquidators. Later on, the race had its culmination in Dubai, when UAE authorities detained the founders of Three Arrows Capital (3AC) as they attempted to board a private jet to Switzerland.
On the other hand, Teneo managed to find and seize around $40 million of the fallen crypto hedge fund’s assets. It might sound like much, but in the bigger picture, it’s just a drop in the ocean. According to court documents, the total amount owed to creditors stands at a colossal $2.8 billion. However, the liquidators didn’t have enough legal basis to liquidate the Singaporean assets, as this would require requesting information from banks, exchanges, partners, etc.
The tables have turned now, as the probe was formally granted by the Singaporean High Court.
The Ship Is Sinking For Three Arrows Capital (3AC)
As if that wasn’t enough, rumors surfaced that the luxury boat that the two founders put a $50M down payment on, has sunk. This came just a few days after the lengthy piece by New York Magazine was released. Su Zhu and Kyle Davies have been waiting on the “MUCH WOW” yacht for months, as it was supposed to be delivered to Italy after the down payment. However, “Crypto Titanic” would be a way more suitable name for 3AC’s dream boat, as some crypto influencers actually claim to have the ship sinking on tape.
Three Arrows Capital having a hard time #3ac pic.twitter.com/Ri73DfVgTX
— Mr. Whale (@WhaleChart) August 23, 2022
Long List of Creditors & Do Kwon’s Bad Influence
Three Arrows Capital (3AC) was among the biggest crypto hedge funds in the industry. It comes with no surprise that creditors involve other insolvent companies, most notably Voyager Digital, which announced on June 27th that Three Arrows Capital (3AC) defaulted on a $665 loan, only to go bankrupt a week later.
Su Zhu and Kyle Davies appeared to understand that crypto is a game of creating virtual fortunes out of thin air and convincing others with traditional forms of money that those virtual fortunes deserve to be real-world ones https://t.co/57s5VSsjUb
— New York Magazine (@NYMag) August 15, 2022
Besides, ties to Do Kwon’s Terra (LUNA) didn’t help. Both Su Zhu and Kyle Davies acknowledged their mistake in forming personal relationships with Do Kwon. As the project looked prosperous during the time, 3AC invested heavily. The decision set them back around $600 million. Moreover, Three Arrows Capital (3AC) owes the biggest chunk of debt to Genesis, which also had to cut back on staff in order to stay afloat. As well summarized by one-half of the 3AC exec team, Kyle Davies: “The whole situation is regrettable”.
On the Flipside
- Instead of running from authorities, another crypto hedge fund Celsius managed to repay a huge amount of debt, despite also filing for Chapter 11 bankruptcy.
- Voyager Digital also gained approval to return $270M to lenders by the court.
Why You Should Care
The rise and fall of Terra (LUNA) and its algorithmic stablecoin Terra (UST) resulted in a domino effect in the crypto world, shredding to pieces massive crypto hedge funds like Three Arrows Capital (3AC), Voyager, Celsius, and many more.
Find out more about 3AC’s adventures while on the run
Read about Do Kwon’s first appearance since the Terra (LUNA) fiasco
Text source: DailyCoin.com
