• Court has demanded affidavits from Three Arrows Capital and its co-founders.
  • The affidavits’ contents may be crucial to liquidators as they try to track down assets.

Su Zhu and Kyle Davies, founders of the now-defunct crypto hedge fund Three Arrows Capital (3AC), have made a comeback on Twitter and in media appearances, and they have a lot to say about the demise of Sam Bankman- Fried’s FTX.

However, neither they nor their legal team in Singapore has been forthcoming with the requested paperwork regarding the company’s insolvency. Singapore’s highest court has demanded affidavits from Three Arrows Capital and its co-founders.

Tracking Assets and Settling Claims 

The British Virgin Islands liquidation order has been legally acknowledged by the Singapore high court. Thus allowing the court-appointed liquidator, Teneo, access to Singaporean financial documents belonging to the firm and its co-founders.

For this reason, the affidavits’ contents may be crucial to liquidators. As they try to track down assets and settle claims with creditors.

During the first few days of May, TerraUSD (UST), Terraform Lab’s algorithmic stablecoin, lost its one-to-one peg with the dollar. And wiped out $40 billion in investor assets, including $200 million belonging to Three Arrows. When the troubled hedge fund failed to pay margin calls or provide additional collateral to safeguard its loan amounts, the cryptocurrency exchanges BitMEX, FTX, and Deribit liquidated the firm’s holdings.

Last but not least, insolvent crypto lender Voyager Digital submitted a formal notice of default after discovering it was owed $661 million by Three Arrows. A British Virgin Islands court ordered the company to go into liquidation two days later.

The Singapore court order, filed on Wednesday, comes a week after Solitaire, one of the Singapore-based legal firms representing Three Arrows Capital, or 3AC, failed to submit the requested papers.

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