In Re Tai Ping Shan Limited (in official liquidation) [2026] HKCFI 4079, the Companies Court granted recognition and assistance to the Cayman-appointed joint official liquidators (the “JOLs”) of a cryptocurrency over-the-counter (“OTC”) trading desk closely connected to the cryptocurrency hedge fund Three Arrows Capital Ltd (“3AC”). The powers granted extended to locating and securing login credentials of email accounts used by the Company, some of which were in turn linked to the cryptocurrency platforms at which the Company’s digital assets are kept or traded.
The decision is a timely illustration of how the common law recognition and assistance regime in Hong Kong can be deployed to secure digital assets in cross-border cryptocurrency insolvencies, particularly where former management and service providers fail or decline to cooperate.
Background
Tai Ping Shan Limited (the “Company”) was incorporated in the Cayman Islands in December 2020 and carried on the business of OTC trading of cryptocurrencies and fiat-to-crypto trades (§2). Two of its founders were also founders and directors of 3AC, the Singapore-based cryptocurrency hedge fund (§3). From mid-2021, the Company operated as an OTC crypto trading desk primarily for 3AC, later extending its services to other clients and to money lending and borrowing transactions with 3AC-connected companies (§4).
In June 2022, 3AC was ordered to be wound up. This, coupled with the plunge in cryptocurrency prices, affected the Company’s operations, and it ceased business in 2023 (§5). Following a creditor’s petition, the Company was wound up by the Grand Court of the Cayman Islands on 14 May 2025 and the JOLs were appointed (§§6-7).
The JOLs’ investigations revealed that the Company’s primary assets were digital assets (cryptocurrency tokens) and claims in the liquidations of 3AC and FTX Trading Ltd (§8). However, their information requests to various Hong Kong-based parties (“Identified Persons”), including the Company’s co-founder and Chief Executive Officer, its Chief Operating Officer, its IT service provider, a payroll/onboarding service provider, and former employees, were largely ignored or met with piecemeal responses (§§9-13).
Armed with a Letter of Request issued by the Cayman Court (§14), the JOLs applied to the Hong Kong court for recognition and assistance.
The Court’s Decision and Key Takeaways
The Court granted the recognition and assistance orders sought (§29). The following points are worth highlighting.
Application of well-established framework: The Court applied the principles summarised in Re USUM Investment Group Ltd [2026] HKCFI 1320: recognition requires, inter alia, that the foreign proceedings be collective insolvency proceedings conducted in the company’s place of incorporation or centre of main interests (COMI), whereas assistance requires, inter alia, that the powers sought be available under the law by which the liquidators were appointed, which was demonstrated in this case by a side-by-side comparison with the JOLs’ powers under Cayman law as confirmed by the LOR (§25).
Digital assets and login credentials: Given the nature of the Company as a cryptocurrency trading desk, the powers granted expressly include locating, securing and taking possession of the Company’s books and records (including in electronic form), including login credentials of the Company’s email accounts (§29(2)(c)). The Court accepted that access to the books and records would not only assist the JOLs’ investigations, but more importantly, allow them to gain access to the relevant platforms at which the Company’s digital assets are kept or traded (§26(1)).
Other relevant considerations: Foreign-appointed liquidators and practitioners should also note that the timing of the application and notice given to the uncooperative parties may also be relevant. In this case, the Court noted that there had been no undue delay, as the application was taken out within 2 months of the Letter of Request, and that notice of the application and hearing had been given to each of the Identified Persons, none of whom (save one indicating no comments) responded (§28).
Conclusion
This decision illustrates the Hong Kong Court’s willingness to grant recognition and assistance to foreign-appointed liquidators in securing digital assets. For foreign-appointed liquidators faced with uncooperative parties in Hong Kong, the case is a useful reminder that common law recognition and assistance can be a valuable tool to “give teeth” to their information requests.
The full judgment is available at: https://legalref.judiciary.hk/lrs/common/ju/ju_frame.jsp?DIS=182859&currpage=T
Ms Jasmine Cheung, instructed by Howse Williams, for the Applicants
