Singapore permits 3AC liquidators to investigate bankrupt fund

The Singapore High Court has accepted the British Virgin Islands-issued liquidation order against Three Arrows Capital, enabling liquidators to investigate the fund’s accounts in Singapore.

The liquidators of Three Arrows Capital have been authorized to investigate the fund’s assets in Singapore.

Bloomberg reported on Wednesday that the Singapore High Court has acknowledged the British Virgin Islands-filed liquidation judgement against the insolvent cryptocurrency firm Three Arrows Capital. Teneo, the financial consulting company authorized to liquidate the fund’s assets, will now have access to Three Arrows’ Singapore-based bank accounts, real estate, and cryptocurrency holdings.

Prior to the local court publicly recognizing the liquidation order, the liquidator had no legal standing to seek information from banks, exchanges, and other institutions.

Teneo’s mission is to gather, preserve, and ultimately sell the company’s residual assets in order to repay creditors. According to the article, the liquidator has so far been able to confiscate around $40 million of Three Arrows’ assets, which represents a minuscule fraction of the $2.8 billion in unsecured claims that creditors, such as Digital Currency Group and Voyager Digital, allege they are due.

Reports that Three Arrows Capital—run by once-beloved crypto community heavyweights Kyle Davies and Su Zhu—could be experiencing bankruptcy concerns started to circulate in June after the market dropped to its lowest levels in more than 18 months.

The firm had taken out many nine- to ten-figure loans to speculate on growing crypto values but was caught off guard when the market fell in May as a result of Terra’s bankruptcy. Voyager Digital stated on June 27 that Three Arrows had failed on a $665 million loan, throwing the cryptocurrency company into bankruptcy. Two days later, a court in the British Virgin Islands ordered Three Arrows to liquidate its assets and put Teneo in charge of the procedure.

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