On the first Friday of December, the latest crypto news surrounding the ongoing story of Three Arrows Capital’s bankruptcy proceedings revealed that liquidators successfully seized $35.6 Million USD from accounts belonging to the firm that was held in Singapore-based banks.
It was also reported that Teneo, the British Virgin Islands court-appointed New York-based liquidation firm also took the opportunity in court to highlight difficulties introduced by actions of the firm’s founders who they scolded in the court proceedings on Friday.
The specific actions condemned by Teneo were co-founders Kyle Davies and Zhu Su talking to the media while simultaneously not cooperating with what they expressed as consistent attempts to probe the firm’s finances.
A Lack Of Cooperation From Three Arrows Co-founders
Three Arrows Capital was the first major crypto platform to file for bankruptcy after the crash of the TerraLuna ecosystem earlier in May of this year. Prior to the collapse, Three Arrows had operated for about a decade, which attributed a considerable degree of credibility in and among the blockchain and crypto space to both Davies and Su. After filing for bankruptcy in late June with the court in the British Virgin Islands where the firm was registered, the co-founders pretty much went silent until recently, when both men began posting on Twitter again.
Liquidators from Teneo expressed to the court that both men have been largely uncooperative from the summer, when the bankruptcy proceedings started. Three months ago the high court gave liquidators the authority to begin digging into the firm’s assets in order to recover funds that can be accounted to repay investors affected by the bankruptcy filing. The $35.6 million dollar seizure is the largest accounted for to date.
Consistent Attempts To Recover Assets
The total debt owed by the failed company after collapsing is $3.5 billion. Representatives from Teneo described the process of tracking the remaining assets and finances in order to repay investors as a ‘hunt’, denoting the difficulty they’ve reportedly faced while attempting to make investors somewhat whole.
According to the presentation used in the proceedings on Friday, there have also been some other funds which have been taken over by liquidators. $2.75 million in forced redemptions of investments were also seized according to the court documents, as well as over 60 different types of cryptocurrency coins and NFTs.
A Preference To Speak With The Press Rather Than Liquidators
The court presentation document also details the limited participation and cooperation by Davies and Su, beginning with the first scheduled Zoom video conference held between Three Arrows and liquidators on July 6.
The court presentation documents that the founders were muted with video feeds off for the entire time of the initial Zoom conference meeting. Other difficulties were also noted by liquidators in the court hearing.
Specifics such as using funds included in the bankruptcy to make multiple payments for the purchase of the ‘Much Wow’ superyacht, and never receiving requested company books with financials in either electronic or physical form are noted issues by the Teneo representatives. The issue might not be so bad if the co-founders didn’t choose to speak on social media and with members of the press while offering little to no communication to Teneo.
It was also documented in the court filings that the founders’ decisions to engage Twitter regularly with information, agree to and undergo exclusive interviews with the likes of Bloomberg and CNBC, have made things more difficult as requests and even subpoenas have gone unanswered in many cases according to the presentation made in court on Friday.
CryptoNewsLine will continue to follow the latest developments around the Three Arrows Capital bankruptcy proceedings, including all relevant news and updates.