The court announced the freezing of 3AC assets and authorized the liquidator to issue subpoenas to related banks and exchanges for claims.

After an emergency hearing held by a New York court on July 12th, the bankruptcy judge has frozen the assets of Three Arrows Capital's 3AC and authorized the liquidator to issue subpoenas to relevant banks and crypto exchanges for claims. Despite founder Su Zhu's first tweet after a month-long absence, the liquidator's lawyer stated in court that Su Zhu and Kyle Davies are still missing.

Hearing Results

According to the CNBC report on the outcome of the hearing, U.S. bankruptcy judge Martin Glenn has approved an emergency motion to freeze the assets of 3AC and authorized the liquidators to seek 3AC's assets in the United States.

Judge Martin Glenn's ruling states that only the designated bankruptcy liquidators have the authority to transfer, secure, or otherwise dispose of all of 3AC's assets within the U.S. jurisdiction.

Additionally, the financial advisory firm Teneo, designated as the liquidators, has been granted the power to subpoena the two co-founders of 3AC, Su Zhu and Kyle Davies, as well as any institutions that have had dealings with 3AC, such as banks, cryptocurrency exchanges, and others.

Creditors' Meeting on 7/18

As reported by The Block, sources familiar with the matter have indicated that the first creditors' meeting will be held on 7/18, hosted by the financial advisory firm Teneo.

They have also set up a dedicated website for creditors, " 3acliquidation.com," to provide updates to the public on the latest developments in the liquidation process of 3AC, with information about the first meeting to be announced on the website.

Adam Goldberg, the liquidation representative lawyer for Teneo, emphasized the continued absence of Su Zhu and Kyle Davies and the challenges in making claims:

Without the cooperation of the founders, the liquidators are unable to fully understand the 3AC assets and their whereabouts, posing real risks given the nature of these digital assets.

On 6/27, the BVI High Court announced the liquidation of 3AC in the British Virgin Islands, with Teneo appointed as the liquidation representative.

On 7/1, 3AC filed for Chapter 15 bankruptcy protection in New York.