Thursday, August 18, 2022

Founders of crypto hedge fund Three Arrows Capital go missing

The founders of bankrupt cryptocurrency hedge fund Three Arrows Capital (3AC) have vanished and the officials charged with liquidating the company were looking for their whereabouts.

The mega fund, founded by Credit Suisse traders Zhu Su and Kyle Davies, once managed an estimated $10 billion in assets.

Now, both Zhu Su and Kyle Davies are missing, reports The Verge.

According to a court document, Zhu and Davies’ whereabouts are currently unknown.

Its liquidators said they have not received “any meaningful cooperation” from the duo.

A British Virgin Islands court has tasked business management company Teneo to oversee 3AC’s liquidation.

The Singapore-based 3AC filed for bankruptcy in the US earlier this month to protect its assets from creditors.

The bankruptcy came as popular crypto tokens such as Bitcoin and Ethereum nosedived by nearly 70 per cent from their record highs amid the economic meltdown.

3AC defaulted on a more than $650 million loan provided by crypto broker Voyager Digital, which has also filed for bankruptcy.

Voyager had significant investments in 3AC, which failed to make payments on a loan of 15,250 Bitcoins and $350 million USDCs — that makes the loan worth more than $650 million.

3AC also reportedly failed to repay $270 million to crypto exchange blockchain.com.

The Monetary Authority of Singapore had slammed Three Arrows for providing false information and breaching an asset under management threshold, the report noted.

Most Read