Three Arrows Capital (3AC) Liquidators Authorized To Launch Probe By Singapore Court

The High Court of Singapore has given the green light to proceed with the liquidation order against Three Arrows Capital (3AC). The order was initially filed in the British Virgin Islands. Teneo, the advisory company appointed by the court, now will be able to investigate the funds that Three Arrows Capital (3AC) has in Singapore.

Crumpler and Farmer Are Not Going To Let 3AC Slide

Crumpler and Farmer, the two liquidators, have been playing cat and mouse with Su Zhu and Kyle Davies for quite some time. The first attempt to get in touch with Three Arrows Capital (3AC) was highlighted in an abandoned office with old mail piled up. This has resulted in Teneo writing an affidavit that’s longer than Pinocchio’s nose (1100+ pages) on how the founders “refused to meaningfully engage” with the liquidators.  Later on, the race had its culmination in Dubai, when UAE authorities detained the founders of Three Arrows Capital (3AC) as they attempted to board a private jet to Switzerland.

On the other hand, Teneo managed to find and seize around $40 million of the fallen crypto hedge fund’s assets. It might sound like much, but in the bigger picture, it’s just a drop in the ocean. According to court documents, the total amount owed to creditors stands at a colossal $2.8 billion. However, the liquidators didn’t have enough legal basis to liquidate the Singaporean assets, as this would require requesting information from banks, exchanges, partners, etc.

The tables have turned now, as the probe was formally granted by the Singaporean High Court.

The Ship Is Sinking For Three Arrows Capital (3AC)

As if that wasn’t enough, rumors surfaced that the luxury boat that the two founders put a $50M down payment on, has sunk. This came just a few days after the lengthy piece by New York Magazine was released. Su Zhu and Kyle Davies have been waiting on the “MUCH WOW” yacht for months, as it was supposed to be delivered to Italy after the down payment. However, “Crypto Titanic” would be a way more suitable name for 3AC’s dream boat, as some crypto influencers actually claim to have the ship sinking on tape.

Long List of Creditors & Do Kwon’s Bad Influence

Three Arrows Capital (3AC) was among the biggest crypto hedge funds in the industry. It comes with no surprise that creditors involve other insolvent companies, most notably Voyager Digital, which announced on June 27th that Three Arrows Capital (3AC) defaulted on a $665 loan, only to go bankrupt a week later.

Besides, ties to Do Kwon’s Terra (LUNA) didn’t help. Both Su Zhu and Kyle Davies acknowledged their mistake in forming personal relationships with Do Kwon. As the project looked prosperous during the time, 3AC invested heavily. The decision set them back around $600 million. Moreover, Three Arrows Capital (3AC) owes the biggest chunk of debt to Genesis, which also had to cut back on staff in order to stay afloat. As well summarized by one-half of the 3AC exec team, Kyle Davies: “The whole situation is regrettable”.

On the Flipside

Why You Should Care

The rise and fall of Terra (LUNA) and its algorithmic stablecoin Terra (UST) resulted in a domino effect in the crypto world, shredding to pieces massive crypto hedge funds like Three Arrows Capital (3AC), Voyager, Celsius, and many more.

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed to be financial legal or tax advice. Trading Forex, cryptocurrencies, and CFDs poses a considerable risk of loss

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Author

Tadas Klimasevskis is a reporter, focusing on the latest tendencies of the crypto galaxy. He spends his time digging deeper into specific areas like meme coins such as Shiba Inu (SHIB) & Dogecoin (DOGE), music NFTs, sports NFTs, digital art and Pop culture in Web 3.0. Tadas strongly believes in crypto as disruptive innovation and keeps an eye out for new crypto hubs being developed around the globe. His vast experience in social media lets him quickly spot what’s going on in the mercurial world of crypto and deliver stories with unique spins. He has been active in blockchain and cryptocurrencies since 2019.