3AC’s Liquidator Gets Singapore Court’s Recognition to Probe

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Key Takeaways:

  • Teneo, the court-appointed liquidator of insolvent 3AC, received the recognition of the Singapore Court on its liquidation order.
  • Singapore High Court on Monday granted a petition by advisory firm Teneo to recognize the liquidation order in the country.

The bankrupt crypto hedge fund Three Arrows Capital(3AC) liquidation process is always plagued with suspense and unexpected turns.

Reportedly, the liquidators have gained the Singapore Court’s recognition of the liquidation order, which could give them more insight into the 3AC’s assets and possibly secure them.

Last month, Teneo-the court-appointed liquidator of insolvent 3AC, hired a Singapore law firm WongPartnership LLP to convince the country’s High Court to recognize the liquidation order issued to 3AC in June by the British Virgin Islands.

Teneo’s main job as a liquidator is to preserve the hedge funds’ assets and ascertain who its creditors are. Teneo is essentially representing the creditors. 

As per a Bloomberg report, the Singapore High Court on Monday granted a petition by Teneo to recognize the liquidation order in the country.

This brings Teneo in a much stronger position to secure 3AC’s assets and meet the bankrupt firm’s obligations to its various creditors. 

According to people familiar with the matter, recognition by Singapore gives the liquidators authority to request access to any financial records the fund kept locally.

The liquidators plan to focus on establishing what assets held in Singapore — including bank accounts, properties, cryptocurrencies, nonfungible tokens, and stakes in companies — can be tied to 3AC itself, according to sources.

The Singapore court ruling follows Three Arrows’ filing for Chapter 15 bankruptcy in the US in July. Three Arrows, founded a decade ago by Su Zhu and Kyle Davies, collapsed after the implosion of the Terra stablecoin project in May.

In late July, Teneo gained control of assets worth $40 million belonging to the embattled hedge fund.

The liquidators reportedly had stated that the fund’s assets consisted of bank accounts, cryptocurrencies, NFTs, and stakes in other firms.

According to court records, Three Arrows Capital (3AC) owes a staggering $3.5 billion to 27 businesses, including Blockchain.com, bankrupt Voyager Digital, and lender Genesis Global Trading.

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Saniya Raahath
Saniya Raahath

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