Three Arrows was recognized by the Supreme Court of Singapore to liquidate capital

This decision of the Supreme Court of Singapore will provide Three Arrow’s liquidator, Teneo, the ability to probe assets held in Singapore.

The liquidators of Three Arrows Capital (3AC) secured a crucial court decision in Singapore, which will give them the ability to probe the local assets of the defunct crypto hedge fund, Bloomberg reported citing people familiar with the matter.

The Singapore High Court granted the request of Three Arrows Capital’s appointed liquidator, Teneo, on Monday. This means that the court now legally recognizes the liquidation order originally filed in the British Virgin Islands.

Recognition in Singapore gives Teneo the freedom to request all financial records held locally, this includes bank accounts, cryptocurrencies, stakes in companies and properties, the report said. In July, 3AC co-founder Su Zhu was reportedly looking to sell one of his homes in Singapore worth $35 million.

Three Arrows was recognized by the Supreme Court of Singapore to liquidate capital

The fall of the hedge fund was part of a wider crypto contagion that swept across the entire industry. In May, algorithmic stablecoin TerraUSD (UST) collapsed alongside the LUNA ecosystem, 3AC had exposure to the ecosystem and Su Zhu described the episode as “humbling”.

After Terra’s collapse, crypto lenders like Celsius Network and Voyager Digital filed for bankruptcy whilst several firms were forced to halt withdrawals as the liquidity crunch gripped the crypto markets.

Teneo has gained control of at least $40 million of Three Arrow Capital’s assets so far, this represents a small fraction of creditor claims, which are estimated to be at least $2.8 billion, according to a 1,157-page court filing published in July.

The founders of Three Arrows Capital broke their silence shortly after the court filing was released, with Su Zhu and Kyle Davies describing the collapse as /”regrettable.”

Source: Coindesk

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