A key court decision in Singapore may give Three Arrows Capital’s (3AC) liquidators to begin a probe on collapsed crypto hedge fund’s remaining assets in a major jurisdiction.
The Singapore High Court granted a petition by advisory firm Teneo. This means it legally recognizes the liquidation order that Teneo filed in the British Virgin Islands.
Reportedly, liquidators started petitioning the court for recognition in mid-July. The nod from the Singapore High Court means that Teneo will be able to get greater insight into all financial records related to Three Arrow Capital that are held in Singapore. This includes real estate, bank accounts, NFTs, properties, stakes in companies, and assets like cryptocurrencies.
The hedge fund was initially based in Singapore before relocating to the BVI last year. In June, Teneo was appointed to handle the liquidation of Three Arrow Capital on the orders of the BVI’s High court of Justice.
Three Arrow Capital’s downfall began with the implosion of the Terra ecosystem in mid-May. It then suffered losses from its investments in Terra’s native token Luna coupled with subsequent turbulence in crypto markets.
These events prompted liquidations by the hedge fund’s lenders, ultimately leading it to collapse. Since then Teneo gained control of at least $40 million of Three Arrows Capital’s assets. This constitutes only a portion of the total $3.5 billion owed by the company to the creditors.
Among all its creditors, crypto trading firm Genesis alone has a claim of $2.36 billion against bankrupt Three Arrows Capital. The Singapore court ruling comes after Three Arrow Capital filed for Chapter 15 bankruptcy in July.