Media: 3AC liquidators seek to take control of fund assets in Singapore

The liquidators of Three Arrows Capital (3AC) are attempting to conduct an investigation and preserve the Singapore assets of the bankrupt cryptocurrency hedge fund. CoinDesk reports, citing local media.

According to them, Teneo, a company based in the British Virgin Islands (BVI), hired a Singaporean law firm to assist. WongPartnership LLP lawyers will file in the High Court a petition to recognise the BVI court’s order liquidating 3AC.

If successful, this would allow Teneo’s lawyers to safeguard the fund’s assets for creditors and bring before the court the co-founders Su Zhu and Kyle Davies. Their whereabouts are unknown.

Another route the liquidators could pursue is to establish the founders’ culpability. According to lawyers, if they can prove that 3AC’s collapse was caused by negligence or improper actions by Zhu and Davies, there would be a chance to seize their personal assets for creditors’ benefit.

Earlier a house in Singapore for $35 million. The entrepreneur also owns a number of other properties in the city-state registered in his name and in his wife’s.

Substantial funds are held by TPS Capital, an over-the-counter trading service linked to the crypto fund, also registered in Singapore.

However, in CoinDesk’s comments, experts noted that the case looks far from straightforward. In their view, 3AC has enough readily available funds to mount a defence.

In early July, the hedge fund filed for bankruptcy in a New York court. Under local law, this allows assets to be shielded from seizure in the United States during the company’s liquidation in the BVI.

The filing followed Voyager Digital, a US crypto broker, sending 3AC a notice of default due to non-payment of a loan.

Earlier, rumours of the fund’s insolvency surfaced in June amid a market crash. The trading firm 8 Blocks Capital accused 3AC of using client funds to cover margin calls.

Read ForkLog’s Bitcoin news in our Telegram — crypto news, prices and analytics.