Zhu Su and Kyle Davies, founders of bankrupt crypto hedge fund Three Arrows Capital (3AC), are reported to be missing.
A court document filed in the US Bankruptcy Court on Friday claims 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 only saw a locked door and a pile of unopened mail.
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 come to court.
The reps state 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.”
Su and Davies owe a lot of money to several people. Their Singapore-based firm went downhill 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.