Three months after receiving approval from the High Court of Singapore to start looking into 3AC's assets there, liquidators for Three Arrows Capital (3AC) seized $35.6 million from the bank accounts of the defunct cryptocurrency hedge fund in the country.

The cash seized by Teneo, the liquidation company with headquarters in New York that was chosen by a British Virgin Islands court, is the highest sum of money to be taken since 3AC collapsed in July, leaving a $3.5-billion debt in its aftermath.

Liquidators have also recouped $2.8 million from forced investment redemptions, as well as an unknown number of crypto tokens and non-fungible tokens (NFTs), according to a presentation given in a court hearing on Friday.

Finding and protecting 3AC's residual assets so that they can be distributed to investors is a difficult assignment for liquidators, and the hedge fund's founders Kyle Davies and Su Zhu have not made matters any simpler, Teneo said, adding that each has been uncooperative since the last summer.

Liquidators have only very occasionally spoken with Su, Davies and their attorneys, according to the hearing presentation.

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Teneo Says 3AC Founders Refuse To Cooperate

Su and Davies showed up on July 6, five days after 3AC filed for bankruptcy, during an introductory Zoom session with the hedge fund's attorneys, but they kept their cameras and microphones off and did not reply to direct inquiries.

Teneo asserted that since that time, it has only spoken with the founders once, with both instances taking place in August, and that Su and Davies' attorneys have not given a full set of financial documents.

Su and Davies assert that they are in Bali and Dubai, respectively, and liquidators note that both places are in "jurisdictions known for difficulties in enforcing foreign court orders."

According to the liquidators, Su and Davies employed security experts, among other things, to establish secure communications between designated individuals that could be deleted commencing in mid-June 2022.

The investment manager of 3AC, they added, has also been unresponsive.

The majority of "physical documents, servers, and hard drives had been removed" when liquidators entered the fund's Singapore office, according to the documents released on Friday.

A 3AC legal assertion that all the necessary information had been supplied, including historical asset data and logins to 3AC's brokerage and trading accounts, was disputed by liquidators.

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