- Late last month, Three Arrows Capital (3AC) filed for ‘Chapter 15’ bankruptcy.
- The Monetary Authority of Singapore issued a reprimand for the provision of fake info on June 30th.
- The current whereabouts of Kyle Davies and Zhu Su are unknown – authorities are concerned about bailout transfers.
The liquidators appointed by the court of Singapore were met with a ghost office, arriving to find only locked doors and piles of dusty, old mail. The founders of Three Arrows Capital have seemingly fled the scene just 4 days after liquidators filed a motion for an emergency hearing, which was recently approved by the U.S. Bankruptcy Court.
Moreover, the creditors appointed by the British Virgin Islands court have expressed strong concerns about the whereabouts of Kyle Davies and Zhu Su, the co-founders of Three Arrows Capital (3AC).
“Catch Me if You Can”, Says 3AC
Crumpler and Farmer, the liquidators appointed by the court, formally requested a meeting with the legal team of Three Arrows Capital on July 8th. The request was expressly denied, and the two parties agreed on a Zoom meeting instead. However, when the annointed time came, none of the company’s lawyers, nor the founders of 3AC were present at the online meeting.
The authorities underlined the high probability that the co-founders of 3AC would look to transfer the assets elsewhere, as a large portion of the liquidation proceeds consisted of crypto assets and cash.
3AC’s bankruptcy filing seems to have been part of a domino effect, as it came to light that the now insolvent Voyager Digital still owes $646 million to Three Arrows Digital. Voyager Digital themselves filed for ‘Chapter 11’ bankruptcy just last week.
Voyager Digital has a plan to reimburse users, but the bankrupt crypto lender has said that users might not get 100% of what's owed.— unusual_whales (@unusual_whales) July 12, 2022
Zhu Unexpectedly Breaks his Silence
On Tuesday afternoon, co-founder Su Zhu decided to break his month-long silence on Twitter, and expressed dissatisfaction at the bad manners with which creditors had treated both him and his colleague. Zhu wrote “Sadly, our good faith to cooperate with the Liquidators was met with baiting”.
On the Flipside
- Celsius Network suddenly repaid $120M of its debt to Maker DAO.