Gone boys: two founders of the infamous 3AC crypto fund have disappeared, the third one complains of harassment

Gone boys: two founders of the infamous 3AC crypto fund have disappeared, the third one complains of harassment 

The founders of the Singapore-based cryptocurrency hedge fund Three Arrows Capital disappeared after earlier filing for bankruptcy. Later, liquidators visited the company’s Singapore office and found nothing but a locked door and a pile of old mail at the site. Well, what a surprise.

However, according to the latest reports, a month later, one of the co-founders of 3AC did break the silence and complained of harassment. Anyway, first things first. 

Bankruptcy 

In early July, Three Arrows Capital filed for bankruptcy in a New York court because of its inability to repay $940 million in loans from brokers Vouager Digital and multifunctional cryptocurrency platform Blockchain.com. The court appointed the management company Teneo to oversee the fund’s liquidation. 

Teneo employees Russell Crumpler and Christopher Farmer said they had been unable to contact Ju and Davis. Farmer went to the Three Arrows Capital headquarters in Singapore but found only a locked door and a pile of mail. In addition, during negotiations at Zoom, people who identified themselves as Su and Kyle refused to turn on the camera and microphone. 

According to Crumpler and Farmer, the fund’s founders will try to withdraw the cryptocurrency and NFT belonging to the lenders to third-party wallets. In that case, the lenders would not be able to recover their assets. In light of the disappearance of the Three Arrows Capital founders, the court scheduled an emergency hearing for July 12. 

Breaking the silence 

However, one of the foundation’s co-founders had to break the silence. Su Zhu, the founder of the collapsed fund, published his first tweet after a month of silence. In it, he said that liquidators of the fund were “harassing” him and co-founder Kyle Davies and ignoring their attempts to work with them in good faith.

Sadly, our good faith to cooperate with the Liquidators was met with baiting. Hope that they did exercise good faith wrt the StarkWare token warrants. pic.twitter.com/CF73xI8r6n

— Zhu Su 🔺 (@zhusu) July 12, 2022

In a screenshot posted by Zhu, Three Arrows legal counsel Christopher Daniel of Advocatus Law in Singapore says 3AC was not provided with copies of court documents filed Friday in New York. 

He also added the fund compiled a list of assets, and sent it to liquidators. The liquidators requested this and intended to ask a U.S. court to subpoena Zhu and Davis to produce the document. 

By the way, 3AC is not the only firm facing a liquidity crisis. Earlier in June, the KuCoin token collapsed due to rumors of its insolvency. Meanwhile, cryptocurrency lender Nexo announced plans to acquire rival Vauld after it halted customer withdrawals, and Voyager Digital filed for Chapter 11 bankruptcy last week in New York.