The 3AC liquidators move to secure the company’s assets in Singapore as the company might have more assets sold off to the creditors so let’s read more in our latest cryptocurrency news.
The There Arrows Capital liquidation process took a new turn and the court-appointed liquidator of the insolvent crypto hedge fund Three Arrows Capital, Teneo also hired a new law company to convince the country’s High Court to recognize the liquidation order issued to 3AC that was issued by the British Virgin Islands as per the reports.
If Teneo’s move is successful, it will enable liquidators to continue the 3AC liquidation process in the hedge fund’s city-state. Teneo can also subpoena 3AC co-founders Kyle Davies and Su Zhu that are now missing for a week. If the High court plays ball, Teneo will be in a stronger position to secure 3AC assets and meet the bankrupt company’s obligations to the various creditors. WongPartnership lawyers could argue that 3AC’s collapse was due to the mismanagement of the founders. If the authorities concur, this will expedite the asset seizure.
The rumors of the 3AC insolvency swirled in the middle of last month with reports emerging that Voyager digital served 3AC with a default notice for failing to repay $673 million debt from the loans of 15,250 BTC as well as $350 million in USDC. Also, the crypto fund was ordered to liquidate by a court in the British Virgin Islands, and the management consulting company Teneo was appointed to assist in the proceedings regarding insolvency. 3AC filed for Chapter 15 bankruptcy at the start of July aiming to protect 3AC’s assets while the liquidation happened in BVI.
The 3AC liquidators move to secure the funds as the Monetary Authority of Singapore added fuel to the flame after issuing a notice that the company provided the regulator with false information. The fund opened an entity in the BVI and as per the MAS, it novated the management of the funds to an unrelated offshore entity. However, the MAS said that this representation was misleading because one of the founders was a shareholder at a BVI-based entity. The MAS reprimanded 3AC for failing to notify the authorities about the changes in directorships and the shareholders of the directors but for also exceeding the permissible $250 million assets under the management limit.