The walls are closing in around one embattled crypto hedge fund as the legal system issues a ruling on behalf of its jilted creditors.
According to a new CNBC report, a federal judge in New York has ordered Three Arrows Capital’s (3AC) remaining assets to be frozen as part of an ongoing bankruptcy proceeding.
The report says that while the whereabouts of 3AC co-founders Zhu Su and Kyle Davies remain unknown, there is concern that they will attempt to strip away funds before the company begins the formal process of liquidating its assets.
Judge Martin Glenn’s written decision specifies that approved liquidation firm Teneo has sole authority to “transfer, encumber or otherwise dispose of any assets of the Debtor located within the territorial jurisdiction of the United States.”
The ruling further grants Teneo subpoena powers against not only Su and Davies but also any financial institutions and cryptocurrency exchanges that conducted business with 3AC.
The decision against Three Arrows Capital comes on the heels of several developments surrounding its relationship with the crypto marketplace Voyager Digital.
Back in late June, Voyager filed a formal notice of default to 3AC seeking repayment of a loan of about $650 million which was comprised of 15,250 Bitcoin (BTC) and $350 million worth of the dollar-pegged stablecoin US Dollar Coin (USDC).
Voyager then announced several days later that it was temporarily halting trading activities on its platform due to liquidity issues arising from 3AC’s outstanding debt, before last week initiating a restructuring process by filing for bankruptcy protection.Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Everyonephoto Studio/Sol Invictus