Three Arrows Liquidators Seize $40 Million as Asset Probe Widens

According to court bankruptcy filings, the liquidators of Three Arrows Capital now have control of at least $40 million in assets, but this is only a fraction of the amount recovered by creditors. The fund's assets mainly consist of bank accounts, cryptocurrencies, nonfungible tokens and stakes in digital-asset firms. The liquidators believe Kyle Davies and Zhu Su, Three Arrows' founders, are still in possession or control of "certain digital assets and bank accounts," Teneo's Russell Crumpler said in a sworn declaration Wednesday. Since July 1, the liquidators have sent requests for information to about 40 institutions in which Three Arrows Capital may have invested, as well as to about 30 banks and exchanges. Its creditors have filed documents indicating they are owed more than $2.8 billion in unsecured claims, and that number is expected to rise significantly, court documents show.