The whereabouts of the founders of Three Arrows Capital, popularly known as 3AC, a Singapore-based cryptocurrency hedge fund, Su Zhu and Kyle Davies, are unknown.
Where are Zhu and Davies? The lawyers involved in the liquidation proceedings of Three Arrows Capital’s British Virgin Islands fund are left wondering. The co-founders are not “cooperating” with the liquidation proceedings and have also fled Singapore.
The lawyers filed courtroom documents against 3AC and its co-founders on behalf of the creditors, wherein they stated that Zhu and Davies “have not yet begun to cooperate with the [proceeding] in any meaningful manner.”
[DB] 3AC's Founders are "Not Cooperating" With Liquidators, Whereabouts Remain Unknown: Court Filing
— db (@tier10k) July 11, 2022
The lawyers have also stated that two people who identified themselves as “Zhu” and “Davies” were present in an initial Zoom call, but their video and audio were shut off. The 3AC co-founders did not reply to the questions directed towards them, and their lawyers answered on their behalf.
As per the documents, lawyers went to the Three Arrows’ Singapore office only to find it abandoned. The creditors are concerned that the assets that are owned by the crypto hedge fund could all be easily transferred as the co-founders are nowhere to be found. The petition says:
“The foreign representatives understand and believe that while the debtor has had certain operations in Singapore, Mr. Davies and Mr. Zhu’s current location remains unknown. They are rumored to have left Singapore.”
According to a tweet by a popular NFT Twitter account (@NFTgators), 3AC owns several NFTs owned by popular projects like Bored Ape Yacht Clubs (BAYC), Art Blocks Curated, and Crypto Punks, all of which were transferred to a new wallet for uncertain reasons.
3AC assets liquidated
The firm filed for bankruptcy on July 2, and thereafter, a British Virgin Islands (BVI) court ordered the liquidation of all the assets of the firm. Also, reportedly, Zhu was last seen selling his mansion in Singapore.
A court hearing is scheduled for Tuesday morning, where the lawyers aim to ask the court to subpoena the founders and make them reveal a list consisting of the company’s assets, including wallets it controls, bank accounts, digital assets in its possession, derivatives contracts, securities, accounts receivables, and the company records as well.