Singapore Court Approves Liquidator’s Probe into Three Arrows

24 August 2022, 12:30 GMT+0000
Updated by Geraint Price
24 August 2022, 12:30 GMT+0000
In Brief
  • Liquidators are reportedly looking to investigate and preserve the Singapore assets of the crypto hedge fund.
  • Earlier, a British Virgin Islands court tasked business management company Teneo with overseeing 3AC's liquidation.
  • 3AC operated as a regulated fund manager in Singapore until last year, when it relocated to the British Crown colony.
  • promo

    Invest and Seaside Club Will Do the Rest Read Now

Three Arrows Capital’s (3AC) liquidators have secured a key court decision in Singapore that may give them greater insight into the collapsed crypto hedge fund’s remaining assets.

According to a Bloomberg report, the court granted a petition by liquidator Teneo which allows the firm to look into the assets of 3AC in Singapore. Teneo was appointed by a court in the British Virgin Islands in June to liquidate Three Arrows, but lacked the legal right to access information the fund held locally.

The Three Arrow Capital’s liquidators won the Singapore decision, allowing them to probe the collapsed crypto hedge fund’s remaining assets. The Three Arrows Capital liquidators are looking to investigate and preserve the Singapore assets of the crypto hedge fund.

Three Arrows liquidators attempt to quantify assets

Recently, Teneo Restructuring was hired to manage the liquidation procedure. 3AC owns various illiquid assets in the form of venture-capital investments in crypto startups and firms.

Teneo attempted to quantify the assets and establish a website with instructions for creditors wishing to make claims against 3AC.

After 3AC failed to meet margin demands when its assets were liquidated, BlockFi and Genesis liquidated the company’s positions. The hedge fund, co-founded by Su Zhu and Kyle Davies, is consulting a law firm in the Virgin Islands, where it is headquartered. It operated as a regulated fund manager in Singapore until last year, when it relocated to the British Crown colony.

Before the ruling on liquidation, 3AC considered a rescue attempt by another company and also selling assets. The court’s decision means that Teneo can now access information about 3AC’s assets in Singapore and take steps to preserve them.

/Related

More Articles

Exchanges among creditors filing for liquidation

Several exchanges, including Deribit and Blockchain.com, filed for the liquidation of 3AC. On June 11, Deribit discovered that 3AC had breached a condition of its agreement with the derivatives exchange by failing to maintain a minimum balance in its account, prompting the hedge fund’s position to be liquidated on June 15.

Disclaimer

BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.