key takeaways
- An emergency hearing took place today regarding Three Arrows Capital (3AC) and its recent bankruptcy filing.
- Judge Glenn Martin froze the firm’s funds; They also gave liquidators the ability to claim assets and issue summons.
- The co-founders of Three Arrows Capital are not cooperating with the proceedings, and their location is unknown.
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According to various reports, Three Arrows Capital (3AC) has frozen its assets as part of the recent court proceedings.
Bankruptcy Judge Closes on 3AC
An emergency hearing was held Tuesday in New York Southern Bankruptcy Court for the creditors of Three Arrows Capital.
During the proceedings, Judge Glenn Martin ruled that Yahoo! Finance today.
Additionally, Judge Martin ruled that the liquidator has the right to claim 3AC’s US assets, according to Reuters. Liquidators can issue subpoenas to 3AC’s founders and about 24 companies that may have relevant information.
The court-appointed liquidators want to determine the value and location of 3AC’s assets, which are largely unaccounted for.
Liquidators’ attorney Adam Goldberg says only two groups of assets have been found to date: a legal retainer with New York-based firm Dan Tan Law and “rights under a variety of New York law debt agreements.”
Goldberg also noted that, because 3AC’s assets are digital, there is a high risk that the founders will run away from those assets unless today’s court order is enforced.
He told Reuters that today’s court order is meant to “put the world on notice” that the liquidators now control 3AC’s assets.
3AC installers not cooperating
Three Arrows Capital filed for bankruptcy under Chapter 15 of the U.S. Bankruptcy Code on Friday, July 1.
Today’s emergency hearing is expected from late last week after Three Arrows Capital co-founders Su Zhu and Kyle Davis failed to cooperate with preliminary proceedings.
On Friday, July 8, court documents indicated that both individuals participated in an online hearing. However, he did not turn on the audio and video and did not answer questions. Only his legal representation participated.
It is believed that Zhu and Davis had recently fled Singapore; His location is still unknown. Three Arrow Capital’s Singapore offices have also reportedly been abandoned.
Despite her disappearance, Zhu posted an update today. On Twitter, he claimed that the liquidators “betrayed” the company during discussions and failed to exercise a token offer.
Disclosure: At the time of writing, the author of this article owns BTC, ETH and other cryptocurrencies.