- Three Arrows moved for Chapter 15 bankruptcy at the end of June.
- Liquidators sent by the court could not access the company’s Singapore headquarters.
A filing by advisory firm Teneo, which is anticipated to sell the remaining assets of the controversial cryptocurrency hedge fund, reveals that the Three Arrows Capital founders are nowhere to be found. Due to the dramatic bear market in digital currencies, Three Arrows moved for Chapter 15 bankruptcy in the British Virgin Islands at the end of June.
Aiming to protect international companies’ assets from U.S. creditors, the move proved successful. Kyle Davies and Zhu Su’s startup, Three Arrows, had filed bankruptcy after defaulting on a $670 million loan from cryptocurrency broker Voyager Digital.
Liquidators Fear Duo Moving Out Remaining Funds
With $3 billion in assets as of April, Three Arrows had $10 billion in cryptocurrencies early this year, according to its liquidators’ court petition. Liquidators sent by the court could not access the company’s Singapore headquarters because the door was closed.
According to the petition, neighbours testified in the lawsuit that no one had been in the offices since the end of May or the beginning of June. By the front door was a mound of outdated mail, according to a Reuters report. Legal counsel for the creditors noted in court files late Friday that 3AC’s founders “have not yet commenced cooperating with the proceeding in any meaningful way.”
At the initial Zoom meeting, attendees identified as “Kyle” and “Su Zhu” were present, but they were neither visible nor heard and refused to answer the lawyers’ questions. Attorneys were the only ones who spoke on their behalf.
Fears are mounting that Three Arrows’ assets, which include cash, cryptocurrencies, and NFTs, may be easily transferred. The liquidators of 3AC, Christopher Farmer and Russell Crumpler claim that Zhu and Davies are “imminent risk,” moving the company’s remaining funds.
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