Liquidators for crypto hedge fund Three Arrows Capital say they can not find founders

Where in the world are Su Zhu and Kyle Davies? The founders of the cryptocurrency hedge fund Three Arrows Capital (3AC) are nowhere to be found, according to officials charged with liquidating the bankrupt company (via Reuters). According to a court document filed on Friday, Zhu and Davies’ whereabouts are currently unknown, and the liquidators say they have not received “any meaningful cooperation” from the two.

Singapore-based 3AC filed for Chapter 15 bankruptcy earlier this month, a move designed to protect foreign companies’ assets from US creditors. News of the bankruptcy petition surfaced after 3AC defaulted on a $ 670 million loan granted by crypto broker Voyager Digital, which has since also filed for bankruptcy. 3AC also failed to repay $ 270 million to the cryptocurrency exchange Blockchain.com. A court in the British Virgin Islands has given the business management company Teneo the task of overseeing 3AC’s liquidation.

Russell Crumpler and Christopher Farmer, two senior executives at Teneo, claim they have not been able to get in touch with Zhu and Davies. In the trial, Crumpler and Farmer claim that they joined a Zoom conversation with “people who identify as” Su Zhu “and” Kyle “, but” their video was turned off and they were muted all the time, and neither of them talked despite questions being asked to them directly. “

During the Zoom conversation, the two founders communicated through representatives of a Singapore-based law firm instead. Farmer claims that he even tried to find Zhu and Davies at the 3AC headquarters in Singapore – only to find a locked door and a pile of unopened mail. Archive notes Zhu may be trying to sell his $ 35 million mansion in Singapore, citing various rumors.

Crumpler and Farmer claim that there is an “imminent risk” that the duo may try to transfer the company’s remaining funds elsewhere. “Here, this risk is increased because a significant part of the debtor’s assets consist of cash and digital assets, such as cryptocurrencies and non-fungible tokens, which are easily transferable,” the archive states. «The foreign representatives [Teneo]the debtor [3AC]and its creditors as a whole would be irreparably damaged if any disposition of the debtor’s assets were to take place during the provisional period. “

Davies and Zhus’ sudden disappearance is not so uncommon in the crypto world. Users struggled to sue Binance last year after the stock market stopped trading while Bitcoin plunged in value … because they really could not figure it out how to sue. And in another case of weirdness, QuadrigaCX chief executive Gerald Cotten died, and his clients’ funds, valued at around $ 250 million, were missing. (Mysteriously, former Quadriga boss Michael Patryn went on to find the Wonderland DeFi protocol.)

As noted by Reuters, the court has scheduled an urgent hearing that will take place on Tuesday 12 July to address 3AC’s situation. The collapse of large cryptocurrency companies such as 3AC has caused a lot of damage to the crypto market which has probably not been fully realized yet. The crypto-loan companies Babel Finance and Celcius have also been shaken by the turbulent market, with both companies freezing transactions in the middle of a “crypto winter.”