Founders of bankrupt crypto hedge fund 3AC go missing, as investors try to recoup assets – By MacKenzie Sigalos (CNBC) / July 12, 2022
- Lawyers representing 3AC’s creditors say the physical whereabouts of Zhu Su and Kyle Davies are “currently unknown.”
- The court filing from Friday also alleges that the founders have not yet begun to cooperate with the liquidation process “in any meaningful manner.”
The co-founders of failed crypto hedge fund Three Arrows Capital appear to be on the run from creditors, according to court documents recently filed in New York.
Lawyers representing the creditors say the physical whereabouts of Zhu Su and Kyle Davies, who started Three Arrows in 2012, are “currently unknown,” ahead of a hearing that is scheduled for 9 a.m. ET on Tuesday to discuss next steps in the liquidation process. The documents, filed Friday evening, also allege that the founders have not yet begun to cooperate with the liquidation process “in any meaningful manner.” On Monday, lawyers requested the court keep the identity of the creditors anonymous.
Zhu and Davies did not respond to requests for comment.
Three Arrows, also known as 3AC, managed about $10 billion in assets as recently as March. On July 1, the firm filed for Chapter 15 bankruptcy protection from U.S. creditors in the Southern District of New York, after a plunge in cryptocurrencies and the collapse of the terraUSD (UST) stablecoin project wiped out its assets.
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