Published , by TJ Denzer
Published , by TJ Denzer
It’s been a wild and rough week for one of the more notable hedge funds in cryptocurrency. Three Arrows Capital (3AC) recently defaulted on a loan of capital and cryptocurrency valued in the hundreds of millions, pushing lender group Voyager into bankruptcy. However, now the founders of the Singapore-based 3AC have disappeared and creditors claim to be altogether unable to locate them.
The latest details of this ongoing story regarding Three Arrows Capital were shared by lawyers representing creditors affected by the hedge fund, as reported by CNBC. Zhu Su and Kyle Davies co-founded 3AC in 2012 and were scheduled to take part in a July 12 hearing which would have laid out the next steps in the liquidation of the company. However, both individuals did not appear and their whereabouts are reportedly unknown. 3AC filed for Chapter 15 bankruptcy at the beginning of July when a crash in cryptocurrency values and the collapse of the TerraUSD stablecoin wiped out 3AC’s assets.
At the order of a court in the British Virgin Islands, 3AC was going through the process of liquidation to pay back debts. This included defaulting on a $670 million loan which pushed major cryptocurrency group and lender Voyager Digital to file for bankruptcy. Up to this point, Zhu and Davies had worked with authorities as 3AC underwent liquidation in bankruptcy court. The founders shared through their lawyers previously that they “intended to cooperate.” Meanwhile, global advisory firm Teneo was hired to manage 3AC’s liquidation and determine what was left in assets for the company.
Even so, it appears that the matter has become even more complicated and perhaps even dire as 3AC’s founders have seemingly disappeared. Stay tuned as we continue to follow this story and other cryptocurrency news for further updates.