According to an order issued on Tuesday, a US bankruptcy court “waves the green flag” to the legal administrator to manage 3AC’s assets and subpoena its founders.
The legal administrator that was investigating 3AC received approval from the court to conduct the investigation into 3AC and the relevant entities. The order that granted provisional relief was issued by a Southern District judge of New York.
3AC previously received a liquidation order from the British Virgin Islands. It was followed by a Chapter 15 bankruptcy filing by the financially troubled firm.
3AC’s Zhu Su comes out of incognito mode
The bear market and tumbling crypto prices were troublesome for investors and several crypto firms alike. The bankruptcy filing of 3AC was followed by Voyager, BlockFi, and other lending platforms facing financial troubles.
In the middle of all of this, Zhu Su and Kyle Davies, the company’s founders, were still missing. After being covert for several weeks, Zhu Su has now made the decision to come out on Twitter.
The founder of Three Arrows Capital revealed images of two emails addressed to a person named Russell. Further images show Zhu Su calling the platform’s liquidators “baiters.”
Zhu Su’s attorney, Christopher Anand Daniel of Advocatus Law, submitted the emails that were previously disclosed. According to reports, the emails were submitted to the Three Arrows Capital liquidators’ legal counsel.
As the founders went missing and their whereabouts were quite unknown, 3AC’s legal representatives were complaining that they were not cooperative. Zhu Su and Davies also didn’t attend the call that was scheduled.
As the crypto bear market persists, most of the cryptocurrencies have lost 70 to 90% of their prices. It all began with the fall of Terra, where several firms and individuals lost millions. The fall in prices caused the crypto firms to liquidate their positions and end up in a troubled financial state.