The Legal Standpoint
On a recent Monday, the Singapore High Court gave the green light to a petition aimed at recognizing the liquidation order against Three Arrows Capital (3AC). This order originally came from a court in the British Virgin Islands. What this means is the petitioner now has the legal power to dive into the financial records of the crypto hedge fund, all while it’s cozying up in Singapore.
Teneo Takes the Helm
The liquidation process is overseen by Teneo, the firm assigned to unravel the tangled web of 3AC’s assets. Teneo argued in their petition filed on July 9 that the company’s Singapore office could hold vital information related to its finances—think bank accounts, properties, digital assets, and those ever-elusive stakes in other companies. One notable piece of real estate? A $35 million bungalow that cofounder Zhu Su was apparently trying to sell this past June.
Zhu Su Defends 3AC’s Moves
In the wake of swirling accusations about being uncooperative with the liquidators, Zhu took to Twitter—yes, the favorite battleground of PR wars—addressing the naysayers with a claim that they had indeed provided a comprehensive spreadsheet detailing the company’s assets to the liquidators. He voiced his frustration, saying, “Sadly, our good faith to cooperate with the Liquidators was met with baiting.” Maybe next time, they should try sending cookies and a thank-you card?
Hiding or Just Playing Hide-and-Seek?
After the liquidation order was handed down on June 27, it seems Zhu and his partner Kyle Davies decided it was the perfect opportunity for a little game of hide-and-seek—allegedly going off-grid for a while. However, they did pop up eventually for an interview with Bloomberg, claiming their disappearance was due to some rather serious death threats. Yikes! Talk about life imitating Internet drama.
The Financial Fallout
As of now, Teneo has gained control of at least $40 million in assets from 3AC. However, this figure is just a drop in the bucket when you consider that 3AC’s total liabilities to creditors have ballooned to over $2.8 billion. Their biggest creditor? Genesis Asia Pacific, which is owed a whopping $2.36 billion. Talk about financial chaos! In the same vein, Voyager Digital, recognizing 3AC’s default on a loan of 15,250 Bitcoin and 350 million USD Coin, decided to freeze withdrawals and other activities. A bold move, for sure!
