US Bankruptcy Court Approves Foreign Administrator for Three Arrows Capital's Debt

The administrator will also be able to subpoena the crypto hedge fund's founders.

AccessTimeIconJul 12, 2022 at 4:18 p.m. UTC
Updated Jul 12, 2022 at 8:37 p.m. UTC
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Nelson Wang is CoinDesk's news editor for the East Coast. He holds BTC and ETH above CoinDesk's disclosure threshold of $1,000.

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A U.S. federal bankruptcy court has approved a request by foreign representatives of liquidators of Three Arrows Capital to administer the crypto hedge fund's assets in the U.S. and subpoena its founders and other relevant parties, according to an order issued Tuesday.

  • The Singapore-based hedge fund filed for Chapter 15 bankruptcy protection in the U.S. on July 1. It had previously been ordered to be liquidated in the British Virgin Islands.
  • Earlier on Tuesday, Three Arrows’s co-founder Su Zhu posted screenshots of an email sent from his legal counsel to legal representatives of its liquidators, alleging they are “baiting” Zhu and co-founder Kyle Davis and ignoring their good-faith attempts to work with them.
  • In legal documents filed late Friday, lawyers for Three Arrows's liquidators said Zhu and Davies were not cooperating with the proceedings and their location is unknown.
  • The first meeting of Three Arrow's creditors will be held on July 18, according to sources who spoke to The Block. The meeting will be hosted by Teneo, a financial advisory firm that is 3AC's court-appointed liquidator.

UPDATE (July 12, 20:37 UTC): Updated with meeting information in the fourth bullet point.

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Nelson Wang is CoinDesk's news editor for the East Coast. He holds BTC and ETH above CoinDesk's disclosure threshold of $1,000.