Liquidation firm Teneo has taken control of $35.6M from Three Arrows Capital’s bank accounts in Singapore following a lack of cooperation from its founders.
As per its presentation, the funds recovered by Teneo comprise fiat currencies and over 60 crypto tokens. The liquidators also extracted over $2.75M from 3AC’s NFT and equity investments. Furthermore, Teneo seized 3AC’s Starkware tokens which the former purchased from the bankrupt crypto hedge fund “on original deal terms.”
Teneo is holding these assets in its crypto custody account, with plans to convert them to USD as necessary. The firm has filed a $30M interim claim in the Cayman Islands for the liquidation of 3AC’s “superyacht.”
The liquidators alleged that 3AC’s founders, Su Zhu and Kyle Davies, have “repeatedly failed to engage” with them. They also disclosed that most physical documents and servers at 3AC’s Singapore office were removed, with the remaining hard drives stuck in a dispute with BVI Investment Manager.
“Founders appear to be in Bali, Indonesia and/or UAE – jurisdictions known for difficulties in enforcing foreign court orders.”
It is worth noting that 3AC’s founders re-emerged on Twitter after FTX filed for Chapter 11 bankruptcy. In their recent tweets, Zhu and Davies blamed FTX and Alameda Research for 3AC’s insolvency crisis. The liquidators and judge are currently debating whether they could serve subpoenas to Zhu and Davies via Twitter as the two have not been responsive through any other channel.
Teneo’s attorney, Adam Goldberg, commented that the bankrupt crypto hedge fund’s founders were more concerned with saving their reputation instead of providing relief to 3AC’s creditors. He also accused them of undermining the asset recovery procedures, adding,
“It's interesting to say the least, that the first time we've heard this theory that FTX caused the downfall of this debtor was after FTX's own sensational collapse.”
