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Liquidators are afraid that the company’s managers will sell its assets
Liquidators of the investment crypto fund Three Arrows Capital (3AC) received permission to subpoena the founders of the company Su Zhu and Kyle Davis, reports Reuters. The summons order was issued after the liquidators’ lawyer Adam Goldberg pointed out to the court that the whereabouts of the founders were unknown, and there were fears that they could sell off the company’s assets for tens of millions of dollars.
The founders of zas did not appear at the court hearing on Tuesday, July 12. Goldberg also claims that Zhu and Davis refused to cooperate with lawyers dealing with the bankruptcy of the crypto platform.
According to Goldberg, without the cooperation of the founders, the liquidators could not get a complete picture of 3AC’s assets and their location. There is a risk that Zhu and Davis could use the company’s funds if they are not stopped by a court order. Goldberg stressed the need to draw the world’s attention to the fact that it is the liquidators who control the assets of the debtor at the moment, the article says.
The court recognized that the management of ZAS funds is a problem and issued permission to issue summonses not only to the founders of the company, but also to almost two dozen banks and cryptocurrency exchanges that may have information about the assets and transfers of ZAS.
Three Arrows Capital, a Singapore-based investment firm founded in 2012, lost a significant portion of its capital after the collapse of the LUNA token in May. On July 2, the fund declared bankruptcy, and a week earlier, the Court of the Virgin Islands (UK) issued a decision that assigned 3AC the status of an illiquid organization.
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