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The physical whereabouts of the co-founders of the failed crypto hedge fund Three Arrows Capital (3AC) “remain unknown” and they appear to be on the run from the creditors, according to court documents filed in New York.
Lawyers that represent the creditors said in the court documents filed last week that Zhu Su and Kyle Davies are nowhere to be found ahead of the hearing for the liquidation process which was scheduled for 9 a.m. ET Tuesday.
The documents claimed that the co-founders are not cooperating with the liquidation process “in any meaningful manner” and requested the court to keep the identity of the creditors anonymous.
At one time, 3AC boasted $10 billion in assets under management (AUM). However, on July 1, the crypto hedge fund filed for Chapter 15 bankruptcy in the Southern District of New York. Prior to the filing, the firm was ordered by a court in the British Virgin Islands to liquidate in order to pay the creditors.
After the court hearing Tuesday, the judge granted provisional relief preventing 3AC from transferring the assets of the creditors in the United States. Furthermore, the co-founders might be subpoenaed in court.
Interestingly, after a month of silence, Zhu spoke out via his official Twitter handle. “Sadly, our good faith to cooperate with the Liquidators was met with baiting. Hope that they did exercise good faith wrt the StarkWare token warrants,” he stated Tuesday.
A Twitter user broke down the post, adding that 3AC probably owns equity and warrants in StarkWare, a firm that aims to improve scalability and privacy in blockchains using STARK technology. Warranty is the ability to convert to tokens at a certain date and time, i.e., the entity that you owe warrants, gets the tokens at a particular time.
Representations of cryptocurrency Bitcoin, Ethereum and Dash plunge into water in this illustration taken, May 23, 2022.
Photo: Reuters / DADO RUVIC
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