Crypto Hedge Fund’s Liquidators Receive Backlash

Su Zhu, who helped start Three Arrows Capital, said Teneo lied to the High Court of Singapore. This week, the High Court of Singapore gave permission for the liquidator to look into the Crypto Hedge Fund’s local assets.
Crypto Hedge Fund's Liquidators Receive Backlash
Crypto Hedge Fund’s Liquidators Receive Backlash

The co-founder of Three Arrows Capital, Su Zhu, said in a notarized document that the crypto hedge fund liquidator, Teneo, told the High Court of Singapore things that were “inaccurate and misleading.” Bloomberg reported this on Friday, citing the document.

In an affidavit that Zhu gave to the court in person on August 19 in Bangkok, he said that the liquidator “had not given a completely complete or accurate version of events.” This is what Bloomberg says. This week, a Singapore court gave Teneo permission to look into Three Arrows Capital’s local assets. This means that Singapore legally recognizes the liquidation order that was first filed in the British Virgin Islands.

Zhu talked about the complicated network of Three Arrows companies that were registered in different places, like Singapore, the British Virgin Islands, and the state of Delaware in the United States. Zhu says that the Singapore-based Three Arrows Capital Pte Ltd (TACPL), which has a complicated structure, may not be able to meet all of the liquidators’ demands.

After the sharp drop in the crypto markets in mid-June, Three Arrows Capital had to pay out around $400 million in Crypto Hedge Fund and could no longer pay its creditors.

We asked Three Arrows Capital and Teneo for a comment, but neither company replied right away.