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Zhu Su and Kyle Davies, founders of bankrupt crypto hedge fund Three Arrows Capital (3AC), are missing — and the evidence suggests they might be on the lam.
A bombshell court document filed in the US Bankruptcy Court on Friday alleges that after failing to receive any “meaningful cooperation” from the founders, representatives from the British Virgin Islands judge-appointed liquidation crew decided to pay the embattled company’s Singapore office a visit.
But upon arrival, the reps were met with — seriously, you cannot make this up — a locked door and a pile of unopened mail.
Ghosted
Reuters reports that an emergency hearing is set to take place today as a result of the filing, but as this attempted courtesy call took place in late June and neither founder has yet to materialize, it’s probably doubtful that they’ll show up in court.
Honestly though, when you look at the bizarre behavior around the bankruptcy, the disappearance isn’t terribly surprising.
The reps allege in the suit that neither hedge honcho nor their lawyers showed up for an “urgent” video meeting last Thursday. Before that, they’d joined a Zoom with “persons identifying themselves as ‘Su Zhu’ and ‘Kyle,'” however “their video was turned off and they were on mute at all times with neither of them speaking despite questions being posed to them directly.”
Big Debts
Su and Davies owe a lot of money to a lot of people. Their Singapore-based firm collapsed after they defaulted on loans to now-bankrupt crypto broker Voyager and exchange Blockchain.com, debts worth $670 million and $270 million respectively.
The liquidators claim they’re trying to prevent the “dissipation” of any remaining funds that the firm might be holding onto. But according to the suit, this may be difficult to prevent, even without the whole missing thing — most of 3AC’s assets are “readily transferable” digital coins and NFTs, or just straight cash.
We do hope that Su and Davies are safe, of course. And we get it, we’ve all run from our problems before. Our problems just weren’t, well, this incredibly serious.
READ MORE: Three Arrows Capital Office Abandoned, Founders Missing, Say Creditors [Decrypt]
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