Following the company’s swift decline from prominence, a federal judge in a New York bankruptcy court has blocked the remaining holdings of cryptocurrency hedge fund Three Arrows Capital (3AC). The fund, established about ten years ago, handled $10 billion in assets just a few months ago. The company’s co-founders are running away from furious creditors attempting to collect part of their losses. A British Virgin Islands court ordered the troubled fund to liquidate to pay off its debts before the bankruptcy filing. On Tuesday, Southern District of New York Chief Judge Martin Glenn approved the urgent request to freeze Three Arrows’ assets. Only the designated bankruptcy liquidators are permitted to “transfer, encumber or otherwise dispose of any assets of the Debtor located within the territorial jurisdiction of the United States,” according to Glenn’s written ruling. Following Glenn’s decision, the global advisory firm Teneo was tasked with overseeing the liquidation. It gave the authorization to subpoena Zhu Su and Kyle Davies, co-founders of 3AC, banks, cryptocurrency exchanges, and other organizations and businesses that have done business with the company. The 3AC Founders Refuse to Cooperate On Friday, July 1, 3AC filed for bankruptcy under Chapter 15 of the United States Bankruptcy Code. Since late last week, when co-founders Su Zhu and Kyle Davies of Three Arrows Capital refused to cooperate with the original proceedin...
