US Bankruptcy Judge Freezes Crypto Hedge Fund Three Arrows Capital’s Assets

A national justice successful a New York bankruptcy tribunal has frozen the assets of crypto hedge money Three Arrows Capital (3AC). “A cardinal portion of this question is to enactment the satellite connected announcement that it is the liquidators that are controlling the debtor’s assets astatine this stage.”

Bankruptcy Judge Freezes 3AC’s Assets

Judge Martin Glenn, a United States bankruptcy justice for the Southern District of New York, granted an exigency question Tuesday to frost the remaining assets of bankrupt crypto hedge money Three Arrows Capital (3AC), CNBC reported, noting that it attended the hearing.

The justice noted successful the bid that lone the assigned bankruptcy liquidators are authorized to “transfer, encumber oregon different dispose of immoderate assets of the debtor located wrong the territorial jurisdiction of the United States,” the work conveyed.

Global consulting and advisory steadfast Teneo was assigned to negociate the liquidation. The steadfast was granted support to subpoena Three Arrows Capital co-founders Zhu Su and Kyle Davies arsenic good arsenic companies that person done concern with 3AC, including banks and crypto exchanges.

An lawyer representing Teneo, Adam Goldberg, stressed successful the hearing:

A cardinal portion of this question is to enactment the satellite connected announcement that it is the liquidators that are controlling the debtor’s assets astatine this stage.

3AC managed astir $10 cardinal successful assets arsenic of March. The Singapore-based hedge money filed for Chapter 15 bankruptcy extortion successful the Southern District of New York connected July 1. Chapter 15 governs cross-border bankruptcy and insolvency proceedings.

Prior to the bankruptcy filing, a tribunal successful the British Virgin Islands ordered the liquidation of 3AC’s assets successful bid to wage backmost its debts. According to reports, partners from Teneo successful the British Virgin Islands are handling the insolvency proceedings.

The lawyers representing 3AC’s creditors explained that 1 of the main reasons for the assertive enactment is that the carnal whereabouts of Su and Davies are “currently unknown.” The creditors besides alleged that Three Arrows Capital’s offices successful Singapore were vacant, but for a fewer inactive machine screens.

Su broke soundlessness aft a period connected Twitter Wednesday. Posting screenshots of 2 emails from Advocatus Law, which represents Three Arrows Capital, to Teneo, helium wrote:

Sadly, our bully religion to cooperate with the liquidators was met with baiting. Hope that they did workout bully religion wrt the Starkware token warrants.

What bash you deliberation astir the U.S. bankruptcy justice freezing the assets of 3AC? Let america cognize successful the comments conception below.