While the hedge fund, Three Arrow Capital (3AC) is battling for survival, 3AC Liquidators pursued permission from the U.S court to take over its assets on Tuesday.
The court granted permission to liquidators to issue subpoenas and raise a claim over the Singapore-based company’s assets.
According to the source, U.S. Bankruptcy Judge Martin Glenn in Manhattan signed an order for liquidator authority to claim 3AC’s U.S.-based assets. Also, he asked to issue warrants to its founders and about two dozen banks and cryptocurrency exchanges that are aware of information about the fund’s assets and transfers.
Adam Goldberg, a lawyer of liquidators, quoted the fact on Tuesday that the location of company founders Zhu Su and Kyle Livingstone Davies is still obscure, and without their cooperation, liquidators can not locate the 3AC’s assets.
“A key part of this order is to put the world on notice that it is the liquidators that are controlling the debtor’s assets at this stage,” Goldberg said.
Zhu Su and Kyle Livingstone Davies have not appeared in the bankruptcy court nor they have opposed the liquidators’ request for subpoena authority.
On Tuesday, Zhu posted a tweet about the rejection of their offer by liquidators to cooperate. This was the first time in a month when the cofounder of 3AC came on Twitter. Before this Zhu came out to accuse liquidators of ‘baiting.’
According to the filing, 3AC held around $3 billion worth of digital assets as of April, exponentially low in comparison with $10 billion in early 2022. The hedge fund filed for bankruptcy in the British Virgin Islands in late June after seeing a massive sell-off in the crypto.
