"Whereabouts Unknown": 3 Arrows Capital Founders Go MIA Amidst Crypto Firm's Bankruptcy
The founders of 3 Arrows Capital have apparently made a good ole-fashioned run-for-it...
The bankrupt crypto hedge fund founders have not been cooperating in the liquidation process of the firm, according to a Bloomberg report this week. And to do one better, their whereabouts have simply been "unknown" since last Friday.
Those founders, Kyle Davies and Zhu Su, have not contacted representatives setup to help liquidate the firm by a BVI judge last week, the report says. However, lawyers for the two men have reportedly said they intend on cooperating.
A photo posted by Bloomberg this week shows the company's headquarters seemingly abandoned....
A court hearing is set for Tuesday this week, as liquidators seek to stop the "dissipation" of the firm's assets.
Lawyers for the liquidators said: “Here, that risk is heightened because a substantial portion of the Debtor’s assets are comprised of cash and digital assets, such as cryptocurrencies and non-fungible tokens, that are readily transferable.”
3AC has been just one of the major firms - joining names like Celsius and Voyager - that has collapsed as a result of the plunge in bitcoin. Insolvency proceedings in the BVI have started, as has a Chapter 15 bankruptcy filing in the US.
Liquidators went to Three Arrows’ office address in Singapore, which "appeared dormant". Bloomberg reported:
"...the door was locked, computers were inactive and mail was stuffed under the door. People working in the surrounding offices said they hadn’t seen anyone enter or exit the office recently."
Lawyers for the two men were on a Zoom call with the liquidators last week, but it was unclear if Zhu and Kyle were even on the call:
“While persons identifying themselves as “Su Zhu” and “Kyle” were present on the Zoom call, their video was turned off and they were on mute at all times with neither of them speaking despite questions being posed to them directly.”