A court filing shows that the current locations of 3AC founders Kyle Davies and Su Zhu are unknown. The development adds to the already tense situation of the company.
Reports are emerging that the founders of now-bankrupt Three Arrows Capital fled Singapore after the company filed for bankruptcy. 3AC was headquartered in the country, and according to a filing, the current location of founders Kyle Davies and Su Zhu is unknown. The filing was made in a court in New York.
Where in the world are Davies and Zhu?
3AC was facing pressure from multiple creditors, and the company’s financial strain at this point is well documented. It filed for liquidation in the British Virgin Islands. The fact that the current locations of the founders are unknown adds temperature to a case already at its boiling point.
The creditors’ lawyers have also said that the Singapore office of 3AC has been vacated. They also said the two founders have not been cooperating with the investigation and even turned off audio and video in a Zoom call.
At one point, 3AC managed over $3 billion in assets — a sum that has fallen phenomenally since the market crash. There have also been rumors that Zhu has sold his mansion in Singapore, at a reported value of $35 million. The funds are believed to have been sent to Dubai.
The lack of cooperation could make this case worse for 3AC. Creditors are desperate for some reparation, but the lack of cooperation does not bode well. As such, they are looking to freeze 3AC’s assets, which appear to be moving out — a development that would rightfully aggrieve investors.
3AC fall stokes fears and anger
The creditors seeking a quick solution to the incident include Deribit and Blockchain.com. The Monetary Authority of Singapore heavily criticized the company and said that it used misleading information.
Meanwhile, Voyager Digital has also suffered from 3AC’s fall. It has filed for chapter 11 bankruptcy and seen its shares slump sharply. The most worrying aspect of this development is that customers of the platform may not get all their crypto back.
Other platforms and companies will be on their toes as the fallout from the 3AC downfall does not appear to be over. Many will see it as a learning lesson and takes precaution when working in the market in the future.