The consulting company Teneo, which was chosen by a BVI court, using this the Singapore legal firm WongPartnership will ask the High Court for permission to investigate 3AC co-founders Kyle Davies and Su Zhu that were hired to oversee the fund’s assets.
Why the investigation?
According to attorneys responding to the petition, one avenue WongPartnership is determining what role the 3AC founders might have personally in the failure of the fund.
If the liquidators can demonstrate misconduct or poor management, they may try to confiscate the parties’ assets.
According to a report, the liquidators of Three Arrows Capital (3AC) are currently requesting the Singaporean legal system to accept their British Virgin Islands (BVI) liquidation proceedings.
As a liquidation handler, Teneo’s responsibility is to keep 3AC’s assets safe and identify its creditors.
The Terra ecosystem’s demise caused the fund to suffer major losses, and a wider industry selloff caused more instability.
According to reports, Zhu and Davies, the co-founders of 3AC, were attempting to figure out how to pay back their lenders and other counterparties in June.
A Chapter 15 bankruptcy filing in the Southern District of New York on July 1 also includes insolvency procedures, allowing overseas debtors to file for bankruptcy in the US.
A court in the Southern District of New York earlier this week authorized the issue of subpoenas to the founders and important companies in order to gather the necessary data for the inquiry.
Problematic crypto hedge fund
Following the loss of Terra’s tokens, news about the problematic cryptocurrency hedge fund has gained traction.
Along with many court-ordered and cryptocurrency exchange liquidations, 3AC also fell behind on a major $650 million loan payments to Voyager Digital.
Su Zhu said that the company was trying to find a solution, but the co-founder also went quiet for over a month.
Zhu recently wrote a tweet criticizing liquidators for “baiting” the firm rather than cooperating with it to find solutions, according to EWN.
Source: https://www.thecoinrepublic.com/2022/07/17/wongpartnership-to-knock-on-high-court-door-for-permission-to-investigate-3ac-co-founders/