(Reuters) – Liquidators for crypto hedge fund Three Arrows Capital (3AC) obtained U.S. courtroom permission on Tuesday to situation subpoenas and lay claim to the bankrupt Singapore-based firm’s assets, noting that 3AC’s missing-in-action founders not management its accounts.

U.S. Bankruptcy Judge Martin Glenn in Manhattan gave the liquidators authority to claim 3AC’s U.S.-based assets and situation subpoenas to its founders and about two dozen banks and cryptocurrency exchanges which will have details about its assets and transfers.

Adam Goldberg, a lawyer for the liquidators, mentioned at an emergency listening to Tuesday earlier than Glenn that the whereabouts of firm founders Zhu Su and Kyle Livingstone Davies stay unknown.

Without the founders’ cooperation, the liquidators have been unable to get a whole view of 3AC’s assets and their location, Goldberg mentioned. The assets’ digital nature creates an actual threat that the founders or different events will whisk them away except stopped by a courtroom order, he mentioned.

“A key a part of this order is to put the world on discover that it’s the liquidators which can be controlling the debtor’s assets at this stage,” Goldberg mentioned.

Zhu and Davies didn’t seem in chapter courtroom and didn’t oppose the liquidators’ request for subpoena authority. Zhu tweeted for the primary time in virtually a month on Tuesday, saying the liquidators had rebuffed their good religion provide to cooperate.

3AC, which was reported to have $10 billion in cryptocurrency earlier in 2022, held $3 billion in assets as of April, in accordance to the liquidators’ courtroom submitting. The firm filed for chapter within the British Virgin Islands in late June after being hammered by a pointy sell-off in digital currencies.

3AC’s insolvency has destabilized different crypto lenders like Voyager Digital, which filed for chapter after 3AC failed to repay a mortgage of about $650 million in cryptocurrency, and Blockchain.com, which loaned $270 million to 3AC.

The liquidators had been appointed by a British Virgin Islands courtroom to wind down the corporate and pay its money owed. They filed a parallel chapter case in Manhattan to protect 3AC’s U.S. assets.

(Reporting by Dietrich Knauth, Editing by Alexia Garamfalvi and Richard Chang)