Press "Enter" to skip to content

New York Judge Freezes Assets of Three Arrows Capital

Following the company’s swift decline from prominence, a federal judge in a New York bankruptcy court has blocked the remaining Assets of cryptocurrency hedge fund Three Arrows Capital.Just a few months ago, the fund, which was established about ten years ago, handled $10 billion in Assets. The company’s two co-founders are currently running away from furious creditors who are attempting to collect part of their losses. A British Virgin Islands court ordered the troubled fund to liquidate in order to pay off its obligations prior to the bankruptcy filing.

Tuesday, Southern District of New York Judge Martin Glenn approved the urgent request to freeze Three Arrows’ Assets. CNBC attended a court session when the next stages in the bankruptcy procedure were discussed.Only the designated bankruptcy liquidators are permitted to “transfer, encumber or otherwise dispose of any Assets of the Debtor located within the territorial jurisdiction of the United States,” according to Glenn’s written ruling.

New York Judge Freezes Assets of Three Arrows CapitalIn accordance with Glenn’s decision, the global advisory firm Teneo, tasked with overseeing the liquidation, was also given authorization to subpoena Zhu Su and Kyle Davies, co-founders of Three Arrows, as well as banks, cryptocurrency exchanges, and other organisations and businesses that have done business with the company. The main worry is that Three Arrows, often known as 3AC, and its management group may be embezzling money before the official liquidation. The $35 million Singapore property owned by Zhu is reportedly up for sale, according to Coindesk, and there have also been rumours of at least one additional digital transfer using a non-fungible token held by the firm.

Teneo’s counsel, Adam Goldberg, stated at the hearing on Tuesday that a crucial component of the request is to alert the public to the fact that the liquidators are currently in charge of the debtor’s Assets. Requests for feedback from Zhu and Davies went unanswered. Christopher Anand Daniel, the pair’s attorney, of Singapore-based Advocatus Law declined to comment when contacted by CNBC.

Be First to Comment

Leave a Reply

Your email address will not be published.