3AC liquidator Teneo, the financial advisory firm officially chosen to liquidate the assets of the bankrupt crypto hedge fund has now received court’s approval from the Singapore High Court to investigate the latter’s local assets.
The approval authorizes Teneo to put forward a request for all financial records linked with Three Arrows Capital that are held in Singapore, like bank accounts, real estate, and assets like cryptocurrencies.
As per a report from Bloomberg, Teneo has till now seized control of at least $40 million of Three Arrows Capital’s assets. Notably, this is just a small fraction of the total owed by the firm to creditors.
Several crypto firms such as Genesis, Digital Currency Group, and Voyager Digital have lent billion of dollars to the defunct hedge firm and are now seeking a way out of the mess.
It all started during the Terra blowup in mid-May with losses incurred from its investments in Terra’s native token Luna, combined with market turbulence in crypto markets, which proved fatal to many lenders including 3AC.
According to a report from New York Magazine 3AC co-founders, Kyle Davies and Su Zhu had previously faced criticism from banks and other traders even before the firm had entered the crypto market.
In an interview, Davies and Zhu reportedly confided that the company lost $200 million in investments but said they’ve “always been crypto believers” and “still are.”
3AC Blamed For Massive Bankruptcy Of Crypto Firms
It all came in full circle as the firm filed for bankruptcy last month and thus pave the way for others to fall suit.
Crypto billionaire and the founder of the FTX exchange, Sam Bankman-Fried, slammed 3AC for triggering a ripple effect that caused crypto firms to file for bankruptcy or freeze transactions. “I suspect they might be 80 percent of the total original contagion,” Bankman-Fried said in a statement to New York Magazine.
“They weren’t the only people who blew out, but they did it way bigger than anyone else did. And they had way more trust from the ecosystem prior to that.”
Moreover, there is still no sign of its founders Su Zhu and Kyle Davies both of them have been mostly unreachable since according to Teneo. Court documents show that both had “failed to cooperate” during the process.