The Liquidators of troubled cryptocurrency hedge fund Three Arrows Capital (3AC) have been granted control over the firm's US assets by a New York State judge, according to a report by Forbes.

But on the firm's founders has complained on Twitter that the company's executives have been misled during negations over the firm's bankruptcy filing.

Liquidators Russell Crumpler and Christopher Farmer of financial firm Teneo now control 3AC's US assets, preventing co-founders Su Zhu and Kyle Davies from transferring or disposing of them after the judge ruled that the executives had failed to participate in liquidation proceedings.

A tweet by Zhu has said their our 'good faith to cooperate with the Liquidators was met with baiting'.