A federal decide in a New York chapter court docket has frozen the property of crypto hedge fund Three Arrows Capital (3AC). “A key part of this motion is to put the world on notice that it is the liquidators that are controlling the debtor’s assets at this stage.”
Bankruptcy Judge Freezes 3AC’s Assets
Judge Martin Glenn, a United States chapter decide for the Southern District of New York, granted an emergency movement Tuesday to freeze the remaining property of bankrupt crypto hedge fund Three Arrows Capital (3AC), CNBC reported, noting that it attended the listening to.
The decide famous within the order that solely the assigned chapter liquidators are licensed to “transfer, encumber or otherwise dispose of any assets of the debtor located within the territorial jurisdiction of the United States,” the publication conveyed.
Global consulting and advisory agency Teneo was assigned to handle the liquidation. The agency was granted permission to subpoena Three Arrows Capital co-founders Zhu Su and Kyle Davies in addition to corporations which have accomplished enterprise with 3AC, together with banks and crypto exchanges.
An legal professional representing Teneo, Adam Goldberg, confused within the listening to:
A key a part of this movement is to place the world on discover that it’s the liquidators which might be controlling the debtor’s property at this stage.
3AC managed about $10 billion in property as of March. The Singapore-based hedge fund filed for Chapter 15 chapter safety within the Southern District of New York on July 1. Chapter 15 governs cross-border chapter and insolvency proceedings.
Prior to the chapter submitting, a court docket within the British Virgin Islands ordered the liquidation of 3AC’s property so as to pay again its money owed. According to experiences, companions from Teneo within the British Virgin Islands are dealing with the insolvency proceedings.
The legal professionals representing 3AC’s collectors defined that one of many principal causes for the aggressive motion is that the bodily whereabouts of Su and Davies are “currently unknown.” The collectors additionally alleged that Three Arrows Capital’s places of work in Singapore have been vacant, aside from a number of inactive laptop screens.
Su broke silence after a month on Twitter Wednesday. Posting screenshots of two emails from Advocatus Law, which represents Three Arrows Capital, to Teneo, he wrote:
Sadly, our good religion to cooperate with the liquidators was met with baiting. Hope that they did train good religion wrt the Starkware token warrants.
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