The liquidators of failed cryptocurrency hedge fund Three Arrows Capital (3AC) have filed an application with the Singapore High Court to have claims against 3AC stayed and access to the company’s headquarters in Singapore. The liquidators said in the 1,157-page document that a court decision is necessary in light of the number of legal proceedings that may arise in the near future and the “virtual radio silence of the Company’s management/directors.”
According to the July 9 request, the Singapore office may contain cold wallets or information on how to access 3AC’s trading accounts, which the liquidators want access to before they are removed or destroyed. The request lists previous unsuccessful efforts to obtain information from company directors Su Zhu and Kyle Davies and their representatives.
Details about 3AC’s financial troubles continue to emerge. According to TheStreet, 3AC’s largest creditor, trader Genesis Asia Pacific, an affiliate of Digital Currency Group, lent 3AC $2.36 billion.
Crypto lender Genesis gave $2.36 billion to Three Arrows Capital
— TheStreet (@TheStreet) July 18, 2022
Genesis gave $2.36 billion to Three Arrows Capital
This is a much larger sum than previously reported. The loan was already known to have an 80% margin and Genesis began selling the collateral immediately when 3AC failed to honor a margin request.
Algorand also appeared on the 3AC list of creditors.
Last September, the Algorand Foundation entered a one-off OTC trade with 3AC. We have reason to believe 3AC violated the associated lockup terms and as such are seeking remuneration per the terms of the agreement….
— Algorand Foundation (@AlgoFoundation) July 18, 2022
Last September, the Algorand Foundation carried out a specific operation with 3AC. We have reason to believe that 3AC violated the associated blocking conditions and therefore request compensation under the terms of the agreement….
The whereabouts of Zhu and Davies are currently unknown. Zhu took to Twitter on July 12 to complain that “our good faith to cooperate with the liquidators was baited.” However, he may appear at 3AC’s creditors’ meeting scheduled for July 18, as he is filing a $5 million claim against the company, according to a tweet from DrSoldmanGachs. Zhu is the co-founder and CEO of 3AC.
I’ve just seen the list of creditors to #3AC and noticed that @zhusu you have filed a claim for $5 million. While being on the run, he has somehow found the time to diligently and ruthlessly fill out forms to pursue a claim against his own Fund. https://t.co/YFfWmYZOoM
— Soldman Gachs ⌐◨-◨ (@DrSoldmanGachs) July 18, 2022
I just looked at 3AC’s list of creditors and realized that Zhu has filed a claim for $5 million. While she was on the run, she has somehow found the time to diligently and ruthlessly fill out the forms to pursue a claim against her own fund.
In addition to Zhu’s claim, 3AC’s investment manager, ThreeAC Limited, claims USD 25 million, continues DrSoldmanGachs in the thread. Kyle Davies’ wife, Kelli Kali Chen, would have claimed a debt of USD 65.7 million in the same presentation before the Supreme Court of the Eastern Caribbean. A court in the British Virgin Islands ordered the liquidation of 3AC on June 27.
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