<p>The joint liquidators of the now-defunct Singaporean crypto hedge fund Three Arrows Capital (3AC) have provided creditors with an estimated 45.74% recovery rate for their claims in the bankrupt estate. Meanwhile, in parallel proceedings in the British Virgin Islands (BVI), a court has frozen $1 billion of founders’ assets.</p><p><a href="https://www.theblock.co/post/268781/3ac-liquidators-estimate-46-per-cent-recovery-rate-for-creditors-teneo-report" rel="noopener noreferrer nofollow">According</a> to The Block, the details were disclosed in a December report to creditors by joint liquidators Russell Crumpler and Christopher Farmer of Teneo, the firm appointed to oversee the liquidation of the failed business.</p><h2 id="header-0">$1.16B in assets</h2><p>As of Dec. 18, the estimated value of 3AC’s assets was reported to be $1.16 billion, while claims totaling $2.7 billion are expected to be recognized for distribution. The liquidators highlighted that settlements in litigation against various parties, including DCG, Genesis and BlockFi, increased reported assets by an estimated $292 million. It’s important to note that the BlockFi settlement is still pending approval.</p><p>A total of 154 claims, valued at $3.4 billion, were filed against the 3AC estate. The report indicates that $200 million of claims were not admitted for distribution, and $322 million in claims have either been rejected or are expected to be rejected. Additionally, $76 million in claims are currently under dispute. The report reveals that initial distributions to creditors are being planned for the first quarter of the upcoming year.</p><h2 id="header-1">Illiquid tokens</h2><p>The breakdown of assets reveals that a large majority are illiquid tokens, subject to vesting periods, comprising 82% of the total. Only 6% of the portfolio is liquid, while equity and investments account for 6.9% and 4.8% is in cash. These illiquid tokens, totaling $563 million at current prices, consist of 13 different tokens with vesting schedules unlocking assets over the next three years, reaching $200 million by the end of 2024.</p><p>To date, the liquidators have staked some of these tokens, resulting in $5.4 million in staking rewards. Liquidation efforts, including the sale of $34.5 million worth of liquid tokens and $15 million in NFTs, along with other asset sales, have generated a total of $66 million.</p><h2 id="header-2">Frozen assets</h2><p>In a related development, Bloomberg <a href="https://www.bloomberg.com/news/articles/2023-12-21/three-arrows-co-founders-1-billion-in-assets-frozen-by-court" rel="noopener noreferrer nofollow">reported</a> on Thursday that a British Virgin Islands court has frozen assets totaling $1.1 billion belonging to 3AC co-founders Su Zhu and Kyle Davies, along with Davies’ wife Kelly Chen. The liquidators filed a claim for insolvent trading against the founders for $1.078 billion, with additional claims against Davies for $66 million and Chen for $4.6 million.</p><p>Teneo outlined the rationale behind the move in the following <a href="https://decrypt.co/210622/3ac-liquidators-freeze-1-4-billion-from-founders" rel="noopener noreferrer nofollow">statement</a> it made to Decrypt:</p><p>“The worldwide freezing order has been sought in connection with claims that are being pursued by the liquidators that allege, amongst other things, that the Founders should be held responsible for causing 3AC’s position to deteriorate by an amount that is equivalent to the value of the freezing orders sought.”</p><p>Su Zhu, who was under house arrest for the last few weeks, became free on Dec. 20. Zhu had been arrested in Singapore on Sept. 29 and sentenced to four months imprisonment, serving two-thirds of his sentence under house arrest.</p><p>Throughout the bankruptcy proceedings, legal fees have accumulated to $49.7 million while the report suggests ongoing efforts to maximize creditor recovery.</p>

3AC liquidators estimate 46% recovery while BVI court freezes $1B

Table of Contents

CoinNess Global

Other articles published on Dec 23, 2023

Hashdex Names BitGo as Bitcoin ETF Custodian in Amended Application

‘Brace for a Strong Rally’ – Trader Says Ethereum Rival Has Entered Bullish Zone, Could Surge by ...

The Intersection of Cryptocurrency and Art: The Rise of NFTs

How SOL’s Journey to $100 Could Set the Stage for a $105 Resistance Test

OpenAI gears up for $100 billion boost in massive funding round

Five Tech Domains Set to Dominate 2024: From AI to Climate Tech and Beyond

Join our free newsletter for daily crypto updates!