Three Arrows founders drop off the map, hinder liquidators

The founders of Singapore-based crypto hedge fund Three Arrows Capital (3AC) have gone off the grid, hindering the liquidation process ordered as part of the firm’s bankruptcy, Bloomberg reported.

When liquidators from advisory firm Teneo visited 3AC’s office in Singapore, it was found to be dormant, with mail shoved under the locked door. People in nearby offices said they had not seen anyone go in or out of the place recently.

Lawyers representing 3AC founders Su Zhu and Kyle Davies had previously informed a British Virgin Islands judge that the two intend to cooperate with the court’s order for the firm to liquidate, but those tasked to see the process through had not received any “meaningful cooperation” from the hedge fund.

Currently, the appointed liquidator is trying to prevent any asset dissipation, saying that it sees a heightened risk due to the easily transferable nature of 3AC’s assets. These include the hedge fund’s cash and digital assets such as cryptocurrencies and NFTs.

The development follows US-based Voyager issuing a default notice to 3AC when the fund failed to service US$668 million in loans. The broker later filed for bankruptcy due to an ongoing crypto downturn, which was made worse by its exposure to 3AC.

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