The whereabouts of Three Arrows Capital (3AC) founders Zhu Su and Kyle Davies are currently unknown, according to creditors trying to seek payment on large unpaid loans.
According to court documents, lawyers representing the creditors say two hedge fund bosses have yet to cooperate in any significant way.
“The physical whereabouts of the Debtor’s founders, Zhu Su and Kyle Livingstone Davies (the “Founders”) are currently unknown, and while a lawyer in Singapore purporting to represent the Founders recently approached the Foreign Representatives, the Founders have not yet begun to cooperate with the Foreign Representatives in any meaningful manner.”
The creditors also believe that since much of 3AC’s assets are held in easily transferable cash or cryptocurrencies, there’s a risk authorities won’t be able to track the assets down.
“Absent provisional relief, there is an actual and imminent risk that the Debtor’s assets may be transferred or otherwise disposed of by parties other than the court-appointed Foreign Representatives to the detriment of the Debtor, its creditors, and all other interested parties. Here, that risk is heightened because a substantial portion of the Debtor’s assets are comprised of cash and digital assets, such as cryptocurrencies and non-fungible tokens, that are readily transferrable.”
Last month, it came to light that 3AC was entering bankruptcy after a series of unfortunate market events, including the collapse of the Terra (LUNA) ecosystem, plus a sharp downturn in crypto asset prices in general.
3AC had taken loans from multiple entities in the industry to fuel their positions, which have yet to be paid back. These debts include a $650 million loan from Voyager Digital, a $270 million loan from Blockchain.com, and an undisclosed amount from Genesis.
According to a report from Reuters, creditors have asked a US court to force the 3AC founders into cooperating.
After nearly a month of silence, Zhu took to Twitter and said that the firm was in fact cooperating with liquidators, but hinted that liquidators had done something unethical in regards to an agreement involving token options on privacy-centric crypto project Starkware. He also shared screenshots of purported email communication between the two parties
“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.”
At time of writing, it is unclear the precise relationship between 3AC, its creditors, and the Starkware project.Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
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