3AC’s liquidators ask a Singaporean court to postpone an expected flurry of lawsuits until they sort out the company’s intricate financial arrangements.
A request for a stay on claims against Three Arrows Capital (3AC), a failing cryptocurrency hedge fund, as well as access to the company’s Singapore offices has been made at the High Court of Singapore. In the 1,157-page document, the liquidators claimed that a court ruling was required due to the numerous legal actions that might be brought soon as well as the “virtual radio silence from the management/directors of the Company.”
The liquidators want access to any cold wallets or information on how to access 3AC trading accounts that may be located in the Singapore office before it is removed or destroyed, according to the application from July 9. The application outlines prior unsuccessful attempts to contact firm directors Kyle Davies and Su Zhu and their representatives for information.
The extent of 3AC’s financial problems is still becoming known. The Street claims that trader Genesis Asia Pacific, a division of Digital Currency Group, is 3AC’s largest creditor and owes 3AC $2.36 billion.
That amount is much higher than what was previously stated. The loan’s 80% margin was already known, so as soon as 3AC missed a margin call, Genesis started selling off security.
Algorand was listed as a creditor of 3AC as well.
Zhu and Davies’ whereabouts are currently unknown. Angry that “our good faith to collaborate with the Liquidators was met with taunting,” Zhu posted on Twitter on July 12. However, given that he is submitting a $5 million claim against the business, he might show up at the 3AC creditors’ meeting set for July 18, per a tweet by DrSoldmanGachs. Co-founder and CEO of 3AC is Zhu.
DrSoldmanGachs says in the post, “3AC investment manager ThreeAC Limited is making a $25 million claim in addition to Zhu’s claim.” According to the same complaint in the Eastern Caribbean Supreme Court, Kyle Davies’ wife Kelli Kali Chen is reportedly seeking payment on a debt she claims is $65.7 million. On June 27, a British Virgin Islands court issued a liquidation order for 3AC.
