- They’ve sought court’s permission to seize $30 million from the sale of the superyacht, Much Wow
- In a recent interview, one of the founders held Sam Bankman-Fried responsible for Luna’s price crash
Liquidators have begun taking control of bankrupt Three Arrows Capital (3AC). Court-appointed liquidators, Teneo, said in a filing with the US Bankruptcy Court in the Southern District of New York that they have taken control of 3AC’s $35.6 million held in cash in different Singapore banks.
Besides, they have also seized $2.8 million worth of tokens and NFTs. Teneo has sought the court’s nod to seize $30 million from the sale of the superyacht “Much Wow” as the liquidators have found out that the 3AC founders — Su Zhu and Kyle Davies — was bought with the company’s money.
3AC Founders Not Cooperating
In their filing, liquidators revealed that 3AC’s founders are not cooperating with asset recovery. Liquidators’ attorney Adam Goldberg said in the court filing that founders Kyle Davies and Su Zhu are giving media interviews on FTX’s collapse and they are trying to shift the blame of 3AC’s collapse to former FTX CEO Sam Bankman-Fried (SBF). But they are not speaking to the liquidators to help their company’s creditors.
“It’s interesting to say the least, that the first time we’ve heard this theory that FTX caused the downfall of this debtor was after FTX’s own sensational collapse,” Goldberg was quoted in a Reuters report.
Shifting Blame to FTX, Alameda
Davies in his interview with CNBC said that FTX and Alameda Research were responsible for the price crash of Luna that “took us down.” Three Arrows in its court filing said the founders are currently based in Indonesia and UAE, countries not known for abiding by international court orders.
After taking a hit from Luna’s collapse in May, Singapore-based 3AC became insolvent and a court in the British Virgin Islands, where it was registered; order its liquidation in July.
