Digital Assets: Three Arrows Capital Founders Allegedly Absconding
That’s according to a filing in bankruptcy court.
The founders of Three Arrows Capital, the collapsed crypto hedge fund operating out of Singapore, are untraceable, says the legal team of the fund in a Chapter 15 bankruptcy filing in the U.S. Bankruptcy Court of the Southern District of New York. The whereabouts of the fund’s cofounders, Su Zhu and Kyle Davies, are not known, said the filing.
The bankruptcy filing in the United States Bankruptcy Court of the Southern District of New York stated that the fund managed $3 billion in digital assets as of April 2022 and requested a stay on efforts by creditors to seize its assets.
“The Foreign representatives understand and believe that while the Debtor has had certain operations in Singapore, Mr. Davies and Mr. Zhu’s current location remains unknown. They are rumored to have left Singapore,” 3AC’s legal representatives said in the filing.
Three Arrows Capital: Margin call
At its peak, Three Arrows Capital had as much as $10 billion of capital, and was known for its large and leveraged bets on cryptos. Last month, it was reported that the fund was unable to meet margin requirements on a bitcoin loan it had availed, and therefore, suffered a liquidation of at least $400 million.
Bloomberg reported that a Singapore mansion held in a trust belonging to one of founder Su Zhu’s children, worth about $35 million, had been put up for sale with proceeds to be remitted to a bank in Dubai.
The sale advertisement has been up for two weeks.
The mansion was purchased in December 2021 for $35 million.
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