Liquidators of collapsing crypto hedge fund Three Arrows Capital (3AC) announced today that they have seized $35.6 million in cash held by the bankrupt firm in Singaporean banks. It is also stated that liquidators sell Ether (ETH) and other coins in 3AC’s portfolio when necessary. Here are the details…
3AC’s liquidators sell Ether
Teneo, the court-appointed liquidator for Three Arrows Capital, said in a filing Friday in the U.S. Bankruptcy Court in the Southern District of New York that they began taking control of assets held by 3AC or its pre-appointment attorneys. The liquidators also added that they have recovered $2.8 million from mandatory redemptions of investments, as well as an unspecified amount of 60 different crypto tokens and NFTs.
For example, 3AC’s Starkware tokens are controlled by Teneo. It turned out that Teneo is converting its Ether holdings into US dollars for an average price of $1,810. As we reported as Kriptokoin.com, it was known that before the bankruptcy, Three Arrows Capital had DOT, UNI, AAVE, COMP, SNX, YFI, BAL, WOO, HXRO, PERP, DODO, ROOK, MTA, DHT, KNC.
Three Arrows Capital went bankrupt in July after a court in the British Virgin Islands ordered liquidation. The Singapore-based firm, which invests client money in new crypto startups, was hit hard by the collapse of crypto project Terra in May. Teneo said in his document Friday that although 3AC founders Su Zhu and Kyle Davies spoke to the media, they largely ignored the liquidators.
3AC founders do not contact liquidators
The Supreme Court of the Republic of Singapore this week ordered co-founders Zhu and Davies to cooperate and submit affidavits outlining their agreement with the company. Teneo claimed that the 3AC founders “repeatedly failed to communicate” with the liquidators. This includes a Zoom meeting where they keep their videos off and mute the microphones for the duration of the call. In the document released on Friday, he used the following statements:
Singapore lawyer provided email addresses to contact the founders; however, the founders and their lawyers did not respond to communications from the liquidators.
The liquidator’s presentation also touched on the company’s superyacht, which Su and Davies named “Much Wow” in reference to the Doge meme. Teneo said it has filed a lawsuit for the $30 million liquidation of the yacht in the Cayman Islands. Three Arrows has been one of the many high-profile crypto companies that have been crushed by this year’s brutal bear market, which has caused the price of nearly every cryptocurrency to plummet, bringing with it major firms and platforms.
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