Three Arrows Capital liquidators take control of the company’s $35 million as founders remain at large
- Three Arrows Capital’s liquidation advisory firm Teneo has seized the fiat currencies from Singapore banks.
- Three Arrows Capital’s founders are allegedly residing in Bali and/or UAE, where foreign court orders are not easily enforced.
- Earlier last month, Three Arrows Capital’s founder Kyle Davies criticized FTX’s collapse stating the crypto industry has been set back by more than five years.
Three Arrows Capital emerged as one of the biggest shocks this year after the company went bankrupt in July. Since then, attempts at restructuring and recouping its losses have continued, with the company’s liquidators seizing 3AC’s holdings.
Three Arrows Capital funds siezed
Three Arrows Capital, also known as 3AC, is in the process of liquidation, led by the advisory firm Teneo. As per filings from December 2, the firm has taken control of some of the assets owned by 3AC and made some progress in terms of assets realization.
Liquidators took control of about $35.6 million worth of fiat currencies, which were previously held by Singapore banks or the company’s pre-appointed lawyers. Secondly, it managed to obtain $2.751 million from forced redemptions of investments.
Furthermore, over 60 types of tokens have been identified to date and the tokens recovered are being held in a crypto custody account controlled by the liquidators.
But while the liquidators are attempting to straighten things out on the asset front, it has not been particularly successful on the people front. Attempting to get a hold of the founders Su Zhu and Kyle Davies since July, the liquidators have only been successful in contacting them twice.
Since then, Zhu and Davies have been at large somewhere in Bali and/or UAE, where foreign court orders are difficult to enforce. The founders have been refraining from cooperating as well, producing no records.
Furthermore, according to the liquidators, the founders seem to have hired security experts in mid-June this year. This was done to “ establish secure communications between designated individuals that could be deleted”.
Thus it seems rather hypocritical of the same founders to be commenting on others when they themselves have impacted the industry as well.
FTX downfall set crypto back
FTX collapse impacted the crypto market significantly, accruing losses across the board. Commenting on the same in an interview, Three Arrows Capital founder Su Zhu stated that the exchange’s setback set the crypto space back by over five years. He added,
“I think it’s even longer than that -- seven or eight years -- maybe even longer, if the underlying issues aren’t solved.”
Author
Aaryamann Shrivastava
FXStreet
Aaryamann Shrivastava is a Cryptocurrency journalist and market analyst with over 1,000 articles under his name. Graduated with an Honours in Journalism, he has been part of the crypto industry for more than a year now.
