Technology

Founder disappears after crypto hedge fund declares bankruptcy


Su Zhu and Kyle Davies, the two founders of crypto hedge fund Three Arrows Capital (3AC) disappeared after the company announced bankruptcy.

According to court filings last week, the liquidators said they could not determine the whereabouts of the two founders and had not received “any meaningful assistance” from either side. the “fathers” of 3AC.

Founders are often “missing” in the crypto world. (Photo: TheVerge)

Earlier this month, Singapore-based 3AC filed for bankruptcy to protect assets from creditors in the US. The move comes after the hedge fund failed to repay a $670 million loan from Voyager Digital, a cryptocurrency brokerage that also went bankrupt.

In addition, 3AC also defaulted on a debt of $270 million from the Blockchain.com exchange.

The court in the British Virgin Islands has assigned the task of overseeing the liquidation of 3AC assets to the business management company Teneo.

Russell Crumpler and Christopher Farmer, two senior executives of Teneo, confirmed that they were unable to contact Zhu and Davies. In a statement sent to the court, Teneo’s leadership said they had participated in a Zoom call with “people claiming to be Su Zhu and Kyle” but their video and microphone were always turned off and none of the leaders. 3AC’s talk about, even with “direct questions”.

This Zoom call was set up through a legal representative based in Singapore. Farmer even went to the office of the leader of 3AC, but only found the door locked and many unopened letters. Court documents also note that Zhu may be trying to sell the $35 million mansion in Singapore.

The sudden disappearance of Davies and Zhu is not too strange in the crypto world. Last year, customers were also unable to sue Binance after the exchange stopped trading Bitcoin at a time when the currency was depreciating. The reason is that there is still no specific legal process for this area.

Another case, when CEO Gerald Cotton of QuadrigaCX passed away, the amount of customer assets deposited on the exchange worth about 250 million USD also disappeared.

According to Reuters, the court has convened an emergency session scheduled to take place on July 12 to resolve the situation of 3AC. The collapse of this hedge fund has caused a lot of damage to the crypto market, which may not be fully documented yet.

Vinh Ngo (According to TheVerge)

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