A court in Singapore has approved to probe an alleged case of cryptocurrency funds collapse by liquidators. The company, Three Arrow Capital, a hedge fund company, was reported to have suddenly collapsed a few months ago after operating for over a year.
Following the alleged winding up, a law firm filed a suit in court to investigate the collapse. After months of the application, the lawsuit was finally approved.
Liquidators Authenticated To Investigate Collapsed Funds
The liquidators had secured a vital court authentication to inquire and account for all details regarding the fund collapse. According to Bloomberg, the lawsuit was supported by a law firm, Teneo. The firm, Teneo, was authenticated by a British court a few months ago to probe the fund liquidation.
However, Teneo requested that the investigations and probes would be made private, possibly to secure any available hedge fund’s assets. Despite being authenticated by the British Island court, the body couldn’t carry out its investigations on the Singapore coast.
The British Island authentication could not operate in Singapore as they needed gal approval from a native local court. The liquidators filed to the Singapore High court to get authority to request and fully authenticate all the fund’s transaction records made by the company.
After getting the investigation approval, the firm will move to probe all the digital currencies and properties that were staked in the hedge fund company. The body will examine the fund’s account transactions, virtual currencies, and NFT tokens.
The Crash Of Three Arrow Capital Fund
Since its launch in May 2021, the hedge fund company has been based in Singapore, trading well before an alleged crash. The company started crumbling after it entered the cryptocurrency space. The company invested funds into the LUNA, TerraUSD project that crashed massively.
After the declaration of the company crash and blow-up, the firm official’s Kyle Davies and Su Zhu revealed significant funds were invested into the LUNA cryptocurrency. Months after the funds were invested, the token price declined massively to below one cent in May.
The founder also stated more funds were invested into GST (Grayscale Bitcoin Trust) and UST (TerraUSD), which later contributed to the total crash of the fund. The founder admitted their mistake and inability to foresee the possible crash of LUNA to nothing in one day and TerraUSD falling below its stable U.S. dollar price.