Three Arrows Capital’s (3AC) liquidators are trying to investigate and bail out the Singaporean assets of a bankrupt cryptocurrency hedge fund. Reported by CoinDesk with reference to local media.

British Virgin Islands (BVI)-based Teneo has hired a Singapore-based law firm to help. WongPartnership LLP experts will file a petition with the Supreme Court to recognize the BVI court’s order to liquidate 3AC.

If successful, this would allow Teneo’s attorneys to protect the fund’s assets in favor of creditors and subpoena founders Su Zhu and Kyle Davis. Their whereabouts are unknown.

Another way liquidators can go is to find out the degree of guilt of the founders. Lawyers say that if they can prove that 3AC’s downfall was due to Zhu and Davis’ negligence or misconduct, they could confiscate their personal assets for the benefit of creditors.

Earlier, Zhu put up for sale a house in Singapore for $35 million. The entrepreneur has a number of properties registered to both him and his wife on the city island.

Significant funds are held by TPS Capital, the crypto fund-related OTC trading service, which is also registered in Singapore.

However, in CoinDesk comments, experts noted that the case appears to be “far from clear”. According to them, 3AC has “sufficient usable defense”.

In early July, the hedge fund filed for bankruptcy in New York court. According to local law, this prevents assets in the United States from being confiscated during the liquidation of the company in the BVI.

The lawsuit comes after American crypto broker Voyager Digital submitted a notice of default by 3AC due to non-payment of the loan.

Recall that rumors of the bankruptcy of the fund appeared in June against the backdrop of a market crash. Trading firm 8 Blocks Capital has accused 3AC of using client funds to cover margin calls.

Read ForkLog bitcoin news in our Telegram – cryptocurrency news, courses and analysis.