The liquidators allege that the creators of the company are situated in Indonesia and the United Arab Emirates, making it difficult for court orders from other countries to be followed. On behalf of the creditors, they have managed to obtain $35.6 million in real money that was held by Singaporean banks or the lawyers of the business prior to its appointment. Plus, more than 60 varieties of digital currencies have been identified and are being held in a digital currency custody account.
Kyle Davies, who is the co-founder of the bankrupt hedge fund Three Arrows Capital (3AC) disclosed through a Twitter thread on Jan. 11 that he had created a creditors group due to grievances from creditors about the bankruptcy costs.
According to Davies, creditors are still unhappy with the ongoing charges and the handling of possessions during the bankruptcy process, implying that “intercreditor disagreements are postponing the procedure, and the estate value is not being maximized.”
During the first ad hoc 3AC creditors meeting, topics such as methods to reduce legal charges, taking action on a contingency basis against Luna consortium/FTX/Genesis, and how to better manage asset sales/distributions were discussed.
Davies invited all creditors to join the group and declared that regular meetings would take place, without giving any additional information. The company filed for a Chapter 15 bankruptcy in a New York court on July 1, and the whereabouts of founders Davies and Zhu Su are unknown. Legal representatives for the liquidators have been attempting to trace and reclaim assets since then, but the founders have not cooperated.
A source familiar with the matter informed Cointelegraph that “The liquidators are attempting to work things out without any help from them. They should cooperate if they want to assist investors.”
After permission was granted by Singaporean authorities following an order from a U.S. bankruptcy court, the liquidators’ last effort to contact Davies and Su was through a subpoena on Twitter on Jan. 5. The subpoena seeks to allow liquidators access to account information, seed phrases, and private keys for 3AC’s digital and fiat assets; details concerning the securities and unregistered shares; and any accounts held on centralized or decentralized exchanges, in addition to any other tangible or intangible assets. Liquidators claim that the co-founders are located in Indonesia and the United Arab Emirates, where it is difficult to implement foreign court orders.
On behalf of the creditors, they have obtained $35.6 million in fiat currencies held by Singaporean banks or by the company’s pre-appointment legal representatives. Moreover, over 60 kinds of cryptocurrencies have been identified and are being kept in a digital currency custody account.