Three Arrows sued in Singapore by crypto investor Mirana

CRYPTO fund Mirana Corp has taken embattled hedge fund Three Arrows Capital (3AC) to court in Singapore over a loan it extended to 3AC and one of its subsidiaries.

Seychelles-incorporated Mirana is claiming US$13 million in relation to an 8.5 per cent interest rate loan agreement, High Court records show, becoming yet another creditor seeking recourse for potential losses after 3AC plunged into financial distress.

Mirana is also seeking a claim for interest continuing to accrue on a US$12.9 million sum – the balance of the loan – from Jun 25 till the date of repayment.

The lawsuit is the first known court case initiated in Singapore against 3AC after the fund failed to make repayments on its loans.

Mirana invests in Web3 funds, projects and entrepreneurs, and has backed startups including Coinhako, Treehouse Finance and Mighty Jaxx.

It is a venture partner of cryptocurrency exchange Bybit, which was headquartered in Singapore and announced its relocation to Dubai in April. Bybit does not control or have any equity interest in Mirana Corp, The Business Times understands.

Mirana declined to comment on legal proceedings.

3AC’s implosion, following a recent meltdown in the crypto markets and the Terra Luna collapse, has sent ripple effects throughout the ecosystem. The firm was estimated by blockchain analytics platform Nansen to manage about US$10 billion in assets as recently as March.

Speculation over the personal assets of 3AC founders Zhu Su and Kyle Davies has gripped the market in recent days as the firm faces liquidation. Zhu is said to be attempting to offload a S$48.8 million high-end bungalow he purchased just in December, BT reported on Friday (Jul 1).

The extent of the impact from 3AC’s crash unfolded over the past week as a British Virgin Islands court ordered the fund’s liquidation and crypto broker Voyager Digital issued a notice of default on a loan worth roughly US$675 million.

Crypto platform Blockchain.com and derivatives exchange Deribit were revealed to be creditors as well, while crypto broker Genesis Global Trading is said to face hundreds of millions of dollars in potential losses.

3AC filed for Chapter 15 bankruptcy in New York last Friday, seeking to protect its US assets from creditors.

The firm, founded in 2012, was up till recently one of the leading crypto investors in the world. Industry players have since taken aim at the company’s conduct following its collapse.

The Monetary Authority of Singapore said 3AC provided misleading information to regulators, and is investigating the firm for further breaches. Meanwhile, Blockchain.com has alleged that the company defrauded the crypto industry and said it intends to “hold them accountable to the fullest extent of the law”.

3AC has been largely silent about the fallout, save for a cryptic tweet from Zhu about working things out before news of the fund’s insolvency was made clear.

The firm is reviewing its options and seeking legal advice in relation to the liquidation order, according to a Jun 29 statement from Nichol Yeo, a partner at law firm Solitaire.