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3AC founders disappeared after bankruptcy

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Three Arrows Capital founders have disappeared after bankruptcy

Cryptocurrencies have seen their value fall in recent weeks, and with them, several companies that depended on cryptocurrencies have gone bankrupt. One of them, was Three Arrows Capital or 3AC, a cryptocurrency hedge fund, which also owed $670 million to crypto broker Voyager Digital. Now, 3AC’s liquidators are looking for the firm’s founders, Kyle Davies and Zhu Su.

The founders of cryptocurrency hedge fund Three Arrows Capital (3AC) are unaccounted for, according to a court document filed last Friday. In fact, their liquidators claim they have not received any “meaningful cooperation” from the two. It should not be long before they turn up, however, as the liquidators now have power over the accounts of Kyle Davies and Zhu Su.

So ruled a judge on Tuesday, granting 3AC’s liquidators full control of the company’s assets, being able to block money transfers into the founders’ accounts. Earlier this month, Three Arrows Capital reportedly sought protection under Chapter 15 of Singapore’s bankruptcy law. This is intended to protect the company’s assets from creditors from the United States.

The company filed for bankruptcy after defaulting on a $670 million loan to cryptocurrency broker Voyager Digital, which was also in bankruptcy. But that was not the end of 3AC’s debts, as it also had to pay $270 million to cryptocurrency exchange platform Blockchain. Following this, a court in the British Virgin Islands tasked the business management company Teneo with the role of overseeing the liquidation of 3AC.

Teneo had some success in reaching out to the founders of Three Arrows Capital, employing two senior managers, Russell Crumpler and Christopher Farmer. In fact, both Teneo executives claim that they went so far as to join a Zoom call with “Zhu Su and Kyle,” but had their microphone and camera turned off. What’s more, they communicated using legal representatives from a Singapore legal agency called Advocatus and Solitaire.

Zhu Su is rumored to be trying to sell his $35 million mansion in Singapore, and he and Kyle Davies may be working together. According to Crumpler and Farmer, there is a risk that the founding duo of Three Arrows Capital may try to transfer the company’s remaining funds elsewhere. And that is, these are partly made up of cash and cryptoassets such as cryptocurrencies and non-fungible tokens (NFTs), which are easily transferable.

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