U.S. Bankruptcy Judge Martin Glenn gave liquidators authority to subpoena and lay claim to bankrupt crypto firm Three Arrows Capital (3AC)’s U.S-based assets on Tuesday.
See related article: 3AC crypto contagion spreads to Blockchain.com: report
Fast facts
- Liquidators can subpoena two dozen banks and crypto exchanges to obtain information about the bankrupt crypto hedge fund’s assets and transfers.
- Permission was also granted to subpoena 3AC cofounders Su Zhu and Kyle Davies, though the pair did not appear in court on Tuesday, and their whereabouts remain unknown.
- This has hindered liquidators’ efforts to get a complete view of the situation and creates a risk the pair could move digital assets unless courts directly intervene, liquidators’ lawyer Adam Goldberg said.
- 3AC filed for Chapter 15 bankruptcy on July 1 shortly after reportedly being ordered into liquidation by a British Virgin Islands court in late June.
- Voyager Digital Ltd. filed for Chapter 11 bankruptcy recently after disclosing it had loaned US$670 million in cryptocurrencies to 3AC while Blockchain.com recently disclosed it’s also at risk of losing US$270 million it had loaned to 3AC.
- Luna/Terra’s collapse had a significant impact on 3AC which had a US$200 million investment in the organization behind the now-defunct stablecoin.
See related article: Bitcoin, crypto fall amid reports of 3AC’s court-ordered liquidation
