Three Arrows founders are ‘MIA’ amid liquidation process

on Jul 11, 2022
  • Three Arrows Capital founders Kyle Davies and Zhu Su haven’t engaged liquidators since Friday.
  • A report from the liquidators suggest the 3AC chiefs have not been at their Singapore offices for a while.
  • The hedge fund recently filed for a Chapter 15 bankruptcy; a BVI court also ordered its liquidation.

Amid mounting scrutiny around the crypto sector, one piece of unfolding event that is tied to a lot of the contagion going on is the liquidation of crypto hedge fund Three Arrows Capital.

The company, which filed for Chapter 15 bankruptcy in June and was ordered liquidated by a British Virgin Islands’ court, appears not to be cooperating with proceedings, according to details in a Bloomberg report on Monday.

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Per the report, Three Arrows co-founders Kylie Davies and Zhu Su have not been in communication with their liquidators. They have allegedly not been heard from and their whereabouts is a mystery, the publication said citing court documents.

Singapore office ‘appeared dormant’

Three Arrows liquidators say their attempts to trace Davies and Su have been futile so far, with the hedge funds offices in Singapore having been deemed “dormant” during a visit late last month.

A video conference between 3AC liquidators and lawyers representing the firm’s founders did feature Davies or Zhu. However, the two had their video links off and on mute, the court documents show.

According to liquidators, the two going MIA even for a while heightens the non-compliance and puts “debtors assets” at risk, especially as the assets are mainly in cash and easily transferable cryptocurrencies and NFTs.

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