3AC Liquidators Move to Secure Its Assets

Teneo, the liquidator of bankrupt crypto hedge fund Three Arrows Capital (3AC), has hired a Singapore law firm WongPartnership LLP to convince the country’s High Court to recognize the liquidation order issued to 3AC last month by the British Virgin Islands (BVI).

Should Teneo’s move be successful, it would enable the liquidators to continue the 3AC liquidation process in the hedge fund’s native city-state.

In addition, Teneo could also subpoena 3AC co-founders Su Zhu and Kyle Davies, who have been missing since last week.

Should the High Court oblige, Teneo will be in a stronger position to secure 3AC’s assets and meet the bankrupt firm’s obligations to its various creditors.

WongPartnership lawyers may also argue that 3AC’s collapse was due to mismanagement on the part of Zhu and Davies.

Should the authorities concur, this would expedite the asset seizure.

At the end of June, 3AC was ordered to liquidate by a court in the British Virgin Islands (BVI), and the management consulting company Teneo was appointed to assist in the insolvency proceedings.

3AC filed for Chapter 15 bankruptcy at the beginning of July, a move calculated to protect 3AC’s U.S. assets while the liquidation happens in BVI.

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