Singapore Authorities Approve A 3AC Probe On Behalf Of Liquidators

Singapore authorities approve a 3AC (Three Arrows Capital) probe on behalf of the liquidators. According to Bloomberg, citing anonymous sources, the Singapore High Court allowed a plea on Monday to recognize a liquidation order issued by a court in the British Virgin Islands against Three Arrows Capital (3AC).

The Singapore court’s ruling, issued in secret, grants the petitioner the legal right to request access to 3AC financial data stored in Singapore, where 3AC is headquartered.

Teneo, the business assigned to liquidate the 3AC assets, submitted its petition with the court on July 9, claiming that the crypto hedge fund may have information on its bank accounts, homes, digital assets, and investments in other firms in its Singapore headquarters. In June, Zhu allegedly attempted to sell his $35 million “bungalow” in Singapore.

In a July 12 tweet, 3AC cofounder Zhu Su replied to claims that the firm had been uncooperative with the liquidators by stating that the company had supplied the liquidators with a spreadsheet detailing the company’s assets.

Sadly, our good faith to cooperate with the Liquidators was met with baiting. Hope that they did exercise good faith wrt the StarkWare token warrants. pic.twitter.com/CF73xI8r6n

— Zhu Su 🔺 (@zhusu) July 12, 2022

After the company’s insolvency order was issued, Zhu and his partner Kyle Davies reportedly went into hiding. They later emerged in an interview with Bloomberg, claiming to be escaping death threats.

On June 27, 3AC was forced into liquidation for allegedly failing to meet margin calls. According to Bloomberg, Teneo has taken possession of at least $40 million in 3AC assets thus far. This amount represents only a small portion of the 3AC’s obligation to its creditors, which totals at least $2.8 billion USD.

Teneo is represented in Singapore by WongPartnership LLP, while Three Arrows’ local business is represented by Solitaire LLP. Teneo, WongPartnership, and Solitaire representatives declined to comment, as reports state. Zhu and co-founder Kyle Davies did not reply quickly to calls for comment.

“We are unable to comment on cases that are before the Courts,” a Singapore High Court spokesperson said.

Genesis Asia Pacific is the company’s largest creditor, owing it $2.36 billion. Genesis’ parent firm, Digital Currency Group, was eventually forced to take a share of the trader’s responsibility in order for the company to continue operating.

Voyager Digital likewise attributed its decision to restrict withdrawals and other operations on July 1 to 3AC’s default on a loan of 15,250 Bitcoin (BTC) and 350 million USD Coin (USDC).

The important thing is that Singapore authorities approve a 3AC probe which will no doubt be newsworthy when it eventually ends.

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