The ICC FraudNet 20th Anniversary Conference hosted a dynamic Fireside Chat featuring Elise Donovan, CEO of BVI Finance, and Russell Crumpler, Managing Partner of Teneo BVI. The discussion centered on the complex liquidation of Three Arrows Capital, offering insights into the process.
The Three Arrows Capital (3AC) case is a significant event in the cryptocurrency world, illustrating the rapid rise and fall of one of the industry's prominent hedge funds. Founded in 2012 by Kyle Davies and Su Zhu, 3AC was a Singapore-based cryptocurrency hedge fund. It borrowed billions of dollars to fund its trading activities but faced liquidation in June 2022 after failing to meet its debt obligations, with creditors claiming the firm owed them $3.5 billion.
Russell Crumpler, appointed by BVI courts as a liquidator of Three Arrows Capital, guided attendees through the challenging aspects of this high-profile case, which involved over $3 billion in creditor claims and about $1 billion in assets successfully recovered. He detailed the hurdles encountered due to volatile cryptocurrency markets and the elusive company directors, remarking, “At one point, they had $10 billion in assets.”
He emphasized the importance of expert project management and international cooperation across various jurisdictions, including the US, Canada, Cayman, Seychelles, Singapore, and the BVI, to manage the complex recovery process effectively.
“The Three Arrows Capital case was not only the most complex case I have ever managed but also was most significant for the BVI,” Crumpler noted. He highlighted the role of blockchain technology in tracing digital assets and called for robust regulatory frameworks to manage such crises.
Looking forward, Crumpler discussed the evolving role of cryptocurrency in financial fraud and varying global regulatory approaches, noting the increasing mainstream acceptance of blockchain and cryptocurrencies. He stressed that innovation is crucial for navigating the challenges posed by new technologies, underscoring the need for adaptive legal frameworks to address the changing landscape of financial crime.
The conference also featured a keynote address by Hon. Lorna Smith, OBE, Deputy Premier and Minister for Financial Services, Labour, and Trade. She stressed the importance of collaboration, innovation, and regulatory vigilance in tackling the evolving challenges of financial crime and securing a robust financial future.
Minister Smith acknowledged the significant contributions of Martin Kenney and Peter Lowe, founding members of FraudNet, in shaping the organization and supporting the BVI’s private sector and government amidst global geopolitical upheavals and the rising threat of fraud.
Highlighting the crucial role of the financial services industry in the BVI economy, she noted its significant contribution to government revenue and the essential nature of a strong financial sector for sustainable development.
Expressing gratitude for FraudNet's decision to host the conference in the BVI, Minister Smith reaffirmed the BVI's commitment to partnering with attendees in the ongoing fight against financial crime.
ICC FraudNet is a worldwide network of leading lawyers who specialize in fraud, international asset tracing and recovery. Founded in 2004 by several leading asset recovery lawyers in collaboration with ICC Commercial Crime Services, the anti-crime arm of the Paris-based International Chamber of Commerce (ICC), the world business organisation.
The conference organized by Martin Kenney & Co, gathering over 100 delegates from 30 countries, was held on Scrub Island in the BVI from 18th to 20th April, with BVI Finance as this year's headline sponsor.
For further information please contact:
Adrianna Soverall
Marketing and Media Relations Coordinator
asoverall@bvifinance.vg |Tel: 284-852-1957