Three stock company founders have one week to file key financial documents: Singapore court

Founders of defunct crypto hedge fund Three Arrows Capital, Su Zhou and Kyle Davis, recently appeared on Twitter and in media interviews with no shortage of opinions about the collapse of Sam Bankman-Fried’s FTX.

But neither they nor their legal team in Singapore cooperated with requests for documents related to the liquidation of their company.

The High Court of the Republic of Singapore has ordered Three Arrows Capital and its co-founders to submit affidavits detailing their dealings with the company.

The winding up order filed in the British Virgin Islands has been formally recognized by the Singapore High Court, which means that Teneo, a court-appointed liquidator, can request the Singapore financial records of the company and its founding partners.

This is why the information in these certificates can be crucial to the liquidators, who have been working to find the funds and figure out how to settle claims with creditors.

Three Arrows Received a $200 Million Hit When TerraUSD (UST), Terraform Labs Algorithm stablecoinLost its link to the dollar and Wiped out $40 billion in mutual funds for a few days at the beginning of May. As rumors swirled about the embattled hedge fund, BitMEX, FTX, and Deribit cryptocurrencies were traded liquidation of the company’s positions When it cannot meet margin requirements, or add collateral to secure outstanding balances on its loans.

The latest blow came when crypto lending firm Voyager Digital, now itself bankrupt, revealed that Three Arrows owed it $661 million and issued a formal notice of default. Two days later it was company liquidation order by a court in the British Virgin Islands.

The Singapore court order, filed on Wednesday, comes a week after an attempt to obtain unanswered documents by Solitaire, a Singapore-based law firm representing Three Arrows Capital, also known as 3AC.

“This is an intriguing situation given your prior correspondence where your client voluntarily provided information to our clients on a rolling basis (without specifying what that information was),” WongPartnership wrote in the letter to Solitaire Nov. 23.

Russell Crumbler and Christopher Farmer, 3AC’s foreign representatives in the company’s bankruptcy proceedings, filed the order in bankruptcy court for the Southern District of New York on Thursday.

In recent weeks, Davies has appeared CNBC, says he is in Bali and has been cooperating with liquidators, then goes on to say that FTX and Alameda Research, a trading firm also founded by Bankman-Fried, “collaborated to trade against clients.” It’s not an odd claim.

In a lawsuit in mid-November, newly appointed FTX chairman John G. Ray (who also oversaw the liquidation of Enron) claimed that Alameda “Secret exceptionsof standardized filtering protocols on FTX, which means the company can trade against FTX users at an unfair advantage.

Zhu was less direct, posting allegations against FTX and Alameda on his Twitter account and speaking to a reporter in Abu Dhabi last week.

“Some industry leaders said the collapse of FTX set the industry back five years,” he said. bloomberg. “I think it’s longer than that — seven or eight years — and maybe longer, if the underlying issues are not addressed.”

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