3AC’s Creditors Seeking $2.8B+ Granted Access to Local Assets in Singapore
Three Arrows Capital’s (3AC) liquidator obtained approval from the Singapore High Court to investigate the crypto hedge fund’s local assets, according to Bloomberg. The court decision also grants the liquidator access to financial records 3AC the fund kept locally in Singapore.
Focus on Identifying Remaining Singapore-based Assets Tied to 3AC
Public relations and advisory firm Teneo, responsible for liquidating the assets of the now-bankrupt cryptocurrency hedge fund Three Arrows Capital (3AC), won approval from the Singapore High Court to probe 3AC’s local assets. Bloomberg reports the approval is likely to give liquidators better insight into 3AC’s remaining assets in Singapore.
The decision also enables Teneo to ask for 3AC’s any financial records the fund kept in Singapore, according to the report. The liquidator previously had no legal basis to ask for such records.
Teneo was appointed by the British Virgin Islands court to liquidate 3AC earlier this year and the latest decision by the Singapore High Court means it legally recognizes the liquidation order that the firm filed. Teneo’s plan is to focus on finding local assets such as bank accounts, cryptocurrencies, non-fungible tokens (NFTs), and company stakes that can be tied to Three Arrows.
Three Arrows Capital filed for Chapter 15 bankruptcy early last month due to a sharp sell-off in the crypto market. The move came as the crypto hedge fund sought protection from creditors in the United States to shield its assets.
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3AC Owes Creditors more than $2.8 Billion in Unsecured Claims
Bloomberg reported last month that Teneo gained control of at least $40 million of 3AC’s assets, a fraction of what the crypto hedge fund owes to creditors like Voyager Digital and Digital Currency Group, earlier court filings show. Creditors claim 3AC owes them over $2.8 billion in unsecured claims, with that figure likely to rise substantially, according to court papers.
Since the start of last month, Teneo has requested information from roughly 40 parties that 3AC may have invested in, in addition to 30 banks and exchanges. Teneo’s Senior Managing Director Russel Crumpler said in July liquidators believe that 3AC founders Kyle Davies and Zhu Su still control “certain digital assets and bank accounts.”
The ongoing crypto winter has wiped billions of dollars of the crypto market value as investors rotated away from risk assets amid significantly high inflation and interest rate hikes. In addition to 3AC, several other crypto firms announced bankruptcy in recent months including Celsius Network and Voyager Digital.
Do you think 3AC would be able to repay its creditors up to any reasonable amount? Let us know in the comments below.