- The insolvency administrators of 3AC want to clarify the financial situation of the company.
- They expect a number of lawsuits.
- More and more believers are coming to light.
The insolvency administrators of the bankrupt crypto hedge fund Three Arrows Capital (3AC) have filed an application with the Singapore High Court for the suspension of claims against 3AC and for access to the company’s headquarters in Singapore. The insolvency administrators said in the 1,157-page document that a court decision was necessary in view of the number of legal proceedings that could be pending in the near future and the “virtual radio silence on the part of the company’s management/directors”.
According to the July 9 application, the Singapore branch could contain cold wallets or information about access to 3AC trading accounts that the insolvency administrators want to access before they are removed or destroyed. The application also mentions previous unsuccessful attempts to obtain information from the heads of the company Su Zhu and Kyle Davies and their representatives.
More and more details are becoming known about the financial plight of 3AC. According to The Street, 3AC’s largest creditor, namely dealer Genesis Asia Pacific, a subsidiary of the Digital Currency Group, has granted a $2.36 billion loan to 3AC.
Crypto lender Genesis gave $2.36 billion to Three Arrows Capital
– TheStreet (@TheStreet) July 18, 2022
This sum is far greater than has been previously reported. It was already known that the loan had a margin of 80 percent and Genesis promptly sold collateral when 3AC missed a margin call.
Algorand is also on 3AC’s 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
It is not known at this time where Zhu and Davies are staying. On July 12, Zhu complained on Twitter that “we cooperated with our insolvency administrators with the best of our conscience and were baited as a result”. However, he could appear at 3AC’s creditors’ meeting on Monday, as he is demanding $ 5 million from the company, according to a tweet from Drsoldmangach. Zhu is the co-founder and CEO of 3AC.
I’ve just seen the list of creditors to #3AC and noticed that @zhusu has 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 âœbestâ–â- (@DrSoldmanGachs) July 18, 2022
In addition to Zhu, 3AC investment manager ThreeAC Limited is also demanding $ 25 million, as DrSoldmanGachs continues to say. The wife of Kyle Davies Kelli Kali Chen is also said to be demanding $ 65.7 million. A court in the British Virgin Islands ordered the liquidation of 3AC on June 27.
