Three Arrows Capital co-founder Su Zhu said Teneo, the crypto hedge fund's liquidator, made "inaccurate and misleading" representations to the High Court of Singapore, Bloomberg reported Friday, citing a notarized document.
In an affidavit delivered Aug. 19 in person in Bangkok, Zhu said the liquidator "had not provided an entirely complete or accurate version of events" to the court, according to Bloomberg. The Singapore court this week granted permission for Teneo to probe the local assets of Three Arrows Capital, a decision that means it legally recognizes the liquidation order originally filed in the British Virgin Islands.
Three Arrows Capital incurred around $400 million in liquidations in mid-June following the sharp downturn in the crypto markets, leaving it unable to meet its obligations to creditors.
Zhu described the complex network of Three Arrows entities registered in different jurisdictions including Singapore, the British Virgin Islands and the U.S. state of Delaware. As a result of the diffuse structure, the Singapore-based entity – Three Arrows Capital Pte Ltd (TACPL) – may not be able to comply completely with the liquidators' demands, according to Zhu.
"Su Zhu’s affidavit was made in support of an application by Three Arrows Capital’s former investment manager seeking to set aside orders made by the Singapore court requiring relevant parties in Singapore to cooperate with the liquidators in the sharing of information relating to the affairs and assets of Three Arrows Capital," Teneo said in response.
"The joint liquidators have submitted their responses to the Singapore court and the application will be heard next month."
Three Arrows Capital did not respond to CoinDesk's request for comment.
UPDATE (13:03 UTC Aug. 26 2022): Adds comment from Teneo
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