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Liquidators of Three Arrows Capital (3AC) are trying to investigate and preserve the Singapore assets of a bankrupt cryptocurrency hedge fund. It is reported by CoinDesk with reference to local media.
According to them, the British Virgin Islands (BVI)-based company Teneo hired a Singapore law firm to help. WongPartnership LLP will file a petition with the Supreme Court for recognition of the BVI court’s decision to liquidate 3AC.
If successful, this will allow Teneo’s lawyers to protect the fund’s assets in favor of creditors and subpoena co-founders Su Ju and Kyle Davis. Their whereabouts are unknown.
Another path that liquidators can take is to find out the extent of the guilt of the founders. According to lawyers, if they can prove that the collapse of 3AC was due to the negligence or misconduct of Zhu and Davis, it will be possible to seize their personal assets in the interests of creditors.
Earlier, Zhu put up for sale a house in Singapore for $ 35 million The entrepreneur has a number of other real estate objects in the city-island, registered to both him and his wife.
Significant funds are available to the OTC trading service TPS Capital, also registered in Singapore, associated with the crypto fund.
However, in the comments of CoinDesk, experts noted that the case looks “far from unambiguous.” In their opinion, 3AC has “enough available means of protection.”
In early July, the hedge fund filed for bankruptcy in a New York court. According to local legislation, this prevents the seizure of assets in the United States during the liquidation of the company in the BVI.
The appeal to the court followed the sending of the American crypto broker Voyager Digital notice of non-fulfillment of 3AC obligations due to non-payment of the loan.
Recall, rumors about the insolvency of the fund appeared in June against the background of the collapse of the market. Trading company 8 Blocks Capital accused 3AC of using client funds to cover margin calls.
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