imrs 1 1 Assets of crypto hedge fund Three Arrows Capital frozen by judge

Assets of crypto hedge fund Three Arrows Capital frozen by judge

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A federal bankruptcy court has frozen the assets of Three Arrows Capital, the once-prominent crypto hedge fund that managed as much as $10 billion in assets until it fell into liquidation last month.
In an emergency hearing Tuesday, Judge Martin Glenn of the Southern District of New York granted a motion allowing liquidators to transfer, encumber, or otherwise dispose of any Three Arrows Capital assets located in the United States.
The court authorized subpoenas for the founders, whose whereabouts are unknown.
The Singapore-based company, also known as 3AC, was founded a decade ago by Su Zhu and Kyle Davies, who both studied at Columbia University in New York City and worked for the same investment bank before making their names as crypto influencers and managers of a multibillion-dollar fund.
It did not, however, survive the broader crypto market meltdown that has erased hundreds of billions in value this year. Bitcoin, the most valuable digital currency, is trading below $20,000, having shed more than 70 percent of its value since last fall.
On June 27, crypto broker Voyager Digital said that Three Arrows Capital had not made payments on a loan worth more than $665 million. The same day, a court in the British Virgin Islands ordered the fund into liquidation.
Four days later, 3AC filed for bankruptcy under Chapter 15 of the U.S. bankruptcy code, which allows a foreign debtor to deal with their U.S. assets.
The court-appointed liquidators Russell Crumpler and Christopher Farmer of the global advisory firm Teneo cited a lack of cooperation to date by Zhu and Davies in a July 8 filing, whose whereabouts they say are unknown.
Though the funds lawyer, Christopher Anand Daniel of Singapore-based Advocatus Law, has been in contact, liquidators say, the co-founders have not begun to cooperate in any meaningful manner.
Shortly before the judge granted the emergency motion, Zhu tweeted two screenshots of email communications between Daniel and the liquidators, including one in which the 3AC lawyer called the July 8 filing baiting.
In Tuesdays hearing, Teneos attorney Adam Goldberg said that the information provided was by no means a sufficient form of cooperation, CNBC reported.
The broader digital currency market has been getting battered for months. In May, Terras popular stablecoin terraUSD and its sister token luna collapsed, causing investors to lose nearly $60 billion.
That helped bring down Three Arrows Capital, where Zhu and Davies had heavily promoted luna, and made the crypto lender suspend withdrawals. Terras founder, Do Kwon, was among the defendants named in a

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