New York Judge Freezes Assets of Three Arrows Capital
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The company's co-founders are running away from furious creditors attempting to collect part of their losses. A British Virgin Islands court ordered the troubled fund to liquidate to pay off its debts before the bankruptcy filing. On Tuesday, Southern District of New York Chief Judge Martin Glenn approved the urgent request to freeze Three Arrows' assets.
Only the designated bankruptcy liquidators are permitted to "transfer, encumber or otherwise dispose of any assets of the Debtor located within the territorial jurisdiction of the United States," according to Glenn's written ruling. Following Glenn's decision, the global advisory firm Teneo was tasked with overseeing the liquidation. It gave the authorization to subpoena Zhu Su and Kyle Davies, co-founders of 3AC, banks, cryptocurrency exchanges, and other organizations and businesses that have done business with the company.
The 3AC Founders Refuse to Cooperate
On Friday, July 1, 3AC filed for bankruptcy under Chapter 15 of the United States Bankruptcy Code. Since late last week, when co-founders Su Zhu and Kyle Davies of Three Arrows Capital refused to cooperate with the original proceedings, an emergency hearing has been scheduled.
According to court filings, the two people participated in an online hearing on Friday, July 8. They would not answer questions, though, and they did not activate the audio and video. Only their legal counsel was present. Zhu and Davies are thought to have recently left Singapore; their current whereabouts are unclear. According to reports, Three Arrows Capital's Singapore offices have also been closed.