Manhattan Court Freezes 3AC Assets

The remaining assets of the troubled Three Arrows Capital have been frozen by a New York federal judge. This follows after court filings by the appointed liquidator of the crypto hedge fund have claimed that the firm’s founders’ whereabouts are currently unknown.

Last week, 3AC filed a Chapter 15 bankruptcy to shield its US assets from lawsuits. According to the filing, the firm’s outstanding debt from Deribit trading accounts that triggered the liquidation now amounts to US$80.1 million, consisting of 2,319 bitcoin and 31,177 ether. 

But the creditors are apparently having trouble seeking the crypto hedge fund’s cooperation with respect to the liquidation process. They filed court documents in a New York court manifesting their frustration that the firm’s founders–Zhu Su and Kyle Davies–have “not yet begun to cooperate.”

But Su tweeted a contradiction to this claim, saying their good faith to cooperate “was met with baiting.”

3AC founders’ legal counsel also said that they will not be proceeding with the set call between the founders and the creditors, and will stay as such depending on the creditors’ answer to their queries.

Information for this briefing was found via Reuters and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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