Three Arrows Capital, the crypto hedge fund (3AC), has been frozen by a New York federal judge. “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
CNBC reported Tuesday that Judge Martin Glenn in the United States Bankruptcy Court for the Southern District of New York granted an emergency motion to stop the assets of Three Arrows Capital (a crypto-hedge fund) going into liquidation.
The judge noted in the order that only the assigned bankruptcy liquidators are authorized to “transfer, encumber or otherwise dispose of any assets of the debtor located within the territorial jurisdiction of the United States,” the publication conveyed.
Teneo, a global consulting and advisory company was appointed to handle the liquidation. It was authorized to subpoena Zhu Su and Kyle Davies, founders of Three Arrows Capital as well as other companies doing business with 3AC (including banks and crypto-exchanges).
Adam Goldberg was Teneo’s attorney.
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.
3AC had approximately $10 billion of assets at March. A Singapore-based hedge funds filed for Chapter 15 bankruptcy protection at the Southern District in New York on July 1. The Chapter 15 bankruptcy law governs insolvency and cross-border bankruptcy proceedings.
Prior to the bankruptcy filing, a court in the British Virgin Islands ordered the liquidation of 3AC’s assets in order to pay back its debts. The insolvency proceedings are being managed by Teneo partners in the British Virgin Islands, according to reports.
The lawyers representing 3AC’s creditors explained that one of the main reasons for the aggressive action is that the physical whereabouts of Su and Davies are “currently unknown.” The creditors also alleged that Three Arrows Capital’s offices in Singapore were vacant, except for a few inactive computer screens.
Su broke his silence Wednesday after one month of Twitter. He posted screenshots from Advocatus Law’s emails to Teneo. wrote:
Our goodwill to cooperate with the liquidators ended in disappointment. I hope that Starkware token warrants were handled in good faith.
Do you have any thoughts about 3AC being frozen assets by the U.S. bankruptcy judge? Comment below.
Images CreditsShutterstock. Pixabay. Wiki Commons.
DisclaimerThis information is provided for educational purposes only. This article is not intended to be a solicitation or offer to sell or buy any product, service, or company. Bitcoin.com is not a provider of investment, tax, legal or accounting advice. This article does not contain any information, products, or advice that can be used to cause or allegedly cause any kind of damage.