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Three Arrows Capital founders can’t be found, creditors say

Three Arrows Capital founders can’t be found, creditors say

The founders of Three Arrows Capital are nowhere to be found, a filing from advisory firm Teneo, which is expected to liquidate the remaining assets of the struggling cryptocurrency hedge fund, has revealed.

In late June, Three Arrows filed for Chapter 15 bankruptcy in the British Virgin Islands following a strong digital currency sell-off.

The action sought to protect the assets of foreign companies from US creditors. Three Arrows, co-founded by Kyle Davies and Zhu Su, has filed for bankruptcy after defaulting on a $670 million loan from crypto broker Voyager Digital, which has also filed for bankruptcy.

According to the liquidators’ court filing, Three Arrows had $3 billion in assets at the end of April and $10 billion in crypto at the beginning of this year.

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Abandoned Three Arrows Office

Official liquidators who recently visited the company’s Singapore office reported that the door was locked and they could not enter.

The court petition says neighbors said no one had been in the office since late May or early June. According to a Reuters report, there was also a pile of old mail at the entrance.

Zhu Su, founder of Three Arrows Capital. Image – Zero Coverage.

In court documents filed Friday night, lawyers for the creditors said the 3AC founders “have not yet begun to cooperate in any meaningful way with the proceedings.”

The lawyers noted that people who identified themselves as “Kyle” and “Su Zhu” were present during the first Zoom meeting, but their video and audio were muted and they refused to respond to direct inquiries. Only his attorneys answered questions on his behalf.

“Imminent risk” of transferring money and assets

Concerns are growing that Three Arrows’ assets, which consist primarily of cash, cryptocurrencies and NFTs, could be easily moved.

Christopher Farmer and Russell Crumpler, who have been appointed liquidators of 3AC by a British Virgin Islands court, say there is an “imminent risk” that Zhu and Davies will try to move the company’s remaining cash overseas.

In its report, Fortune claimed that Three Arrows’ Starry Night NFTs had already been moved to a new wallet for unknown reasons.

Total crypto market capitalization at $870 billion on the daily chart | Source: TradingView.com

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Reuters claims, citing the court document, that Zhu is trying to sell properties in Singapore valued at tens of millions of dollars.

The fall of major crypto companies like Three Arrows has wreaked havoc on the entire crypto industry.

Celcius and Babel Finance froze trading in response to a severe “crypto winter” due to market volatility.

A court hearing in New York was set for Tuesday morning.

Featured Image of Nexo, Chart from TradingView.com

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