Reading time: ~2 m
Bankruptcy court in New York froze the assets of the sensational cryptocurrency hedge fund Three Arrows Capital
A court in the United States froze the assets of the hedge fund Three Arrows Capital (3AC). It is reported by CNBC with reference to the court order.
The judge also gave the fund’s liquidators the authority to “transfer, encumber, or otherwise dispose of any creditor assets within the territorial jurisdiction of the United States.” In fact, this means that access to the assets of the fund will be given to both the teneo law firm and banks and crypto exchanges that cooperated with 3AC before the bankruptcy.
As noted by CNBC, so far the greatest risk to the assets of the fund’s creditors is represented by the founders of the fund Su Zhu and Kyle Davis, since unknown people previously began to withdraw funds to cryptocurrency exchanges. The whereabouts of Zhu and Davis are still unknown.
Adam Goldberg, a lawyer at the law firm Latham & Watkins, noted that now the liquidators are actively looking for statements from 3AC bank accounts and addresses of the fund’s cryptocurrency wallets.
Earlier, Zhu accused Teneo’s top managers of baiting and unwillingness to meet the fund halfway. In response, Goldberg said during the court hearing that the information that the founders of 3AC provided before the trial “is in no way a sufficient form of cooperation.”
The managing partner of the venture fund Castle Island Ventures, Nick Carter, said in a comment to the media that the trial is unlikely to end quickly. In his opinion, due to the “offshore” three Arrows Capital, the proceedings will take years.
Recall that in early July, Three Arrows Capital filed for bankruptcy, using Chapter 15 of the US Bankruptcy Code. According to media reports, with the help of Chapter 15, 3AC can avoid the confiscation of the fund’s assets in the United States.
All information contained on our website is published in good faith and objectivity and for informational purposes only. The reader is solely responsible for any actions taken on the basis of information received on our website.
#court #froze #assets #hedge #fund #Arrows #Capital