3AC Creditors In Emergency Hearing, Founders Fail To Cooperate

3AC creditors started an emergency hearing as the founders failed to cooperate, with the 3AC creditors saying the fund’s remaining assets can be transferred or disposed of before they get their share so let’s read more in our latest altcoin news.

The lawyers involved in the liquidation proceedings of Three Arrows Capital fund will certainly like to know with the hedge fund founders were not cooperative in the proceedings so far and the location of the founders is uknown. In the court documents filed on Friday, the lawyers acted on behalf of the creditors and said that the founder of the fund hasn’t yet started to cooperate with the proceedings in a meaningful manner. The lawyers said that the people identifying themselves as Kyle and Su Zhu were present on the initial Zoom call but the video audio call was turned off and they didn’t respond to questions posed directly to them. Only their representatives answered questions and the lawyers for the creditors visited the Three Arrows Singapore office which was abandoned.

Concerns are mounting that assets that belong to Three Arrows that are largely in the form of cash, NFT, and crypto which can be easily transferred. NFTs belonging to Three Arrows’ NFt fund Starry Night were transferred to a new wallet for unexplained reasons. The creditors are looking to freeze Three Arrows assets but then they have requested the court to compel the fund’s founders to list the fund’s assets. The Three Arrows creditors are asking the court to subpoena the founders and have them provide the list of company assets like the wallets they control, bank accounts and digital assets, derivatives contracts, account receivables, and the company records.

As recently reported, Genesis joined list of companies that liquidated Three Arrows Capital and the CEO Michael Moro confirmed that the platform had exposure to the hedge fund. In a recent Twitter thread, Genesis CEO Michael Moro said that the counterparty that failed to meet the margin call mentioned by the crypto broker was the troubled Three Arrows Capital. The news came hot on the heels of the court in the British Virgin Islands that ordered 3AC to liquidate the assets and the public nature of the order was in part why Moro is able to identify who the larger counterparty is. He explained that the collateral used for the loan was sold to protect the company.