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Insolvent Crypto Fund Three Arrows: Offices Deserted, Bosses Not Found

Insolvent Crypto Fund Three Arrows: Offices Deserted, Bosses Not Found

According to the bankruptcy administrators, the two founders of the recently bankrupt crypto hedge fund Three Arrows Capital are currently unable to be traced or traced. Administrators said in a filing on Friday Court document made available by the Reuters news agency. As a result, the fund’s two founders, Zhu Su and Kyle Davies, have shown no willingness to cooperate so far.

The bankruptcy administrators complain in the letter that the two did not attend to the requests for a personal meeting. Instead, there was only one zoom meeting where two people named Zhu Su and Kyle Davies were also present. However, they did not speak and their cameras and microphones were permanently turned off. Only the attorneys representing Three Arrows spoke.

The mail piled up

Shortly after his appointment, the liquidators also attempted to pay a visit to the Three Arrows office in Singapore. The offices appeared to be deserted, the door had been locked and from the outside it could be seen that unopened mail from Three Arrows was piling up behind the door. The lawyers argued at the zoom meeting that this was just the registration address of the parent company of the bankruptcy fund company, which, according to the bankruptcy administrators, did not match the printout on the site.

The liquidators also warn of the danger of Three Arrows’ remaining assets going into hiding. These are mainly cash, cryptocurrencies, and NFTs that can be easily transferred. Zhu Su is also rumored to be trying to sell tens of millions of dollars worth of property in Singapore.

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In the meantime Zhu Su reported via Twitter speak and in turn make allegations against the bankruptcy administration. The goodwill of cooperation between the two founders was attracted. Part of the tweet is two screenshots of a letter from a lawyer that, among other things, raises the question of whether the bankruptcy administrators are to blame for a deal with the Starkware startup failing. Nor was a copy of the court document received with the claims of the insolvency administrator. He did not comment on the allegations.

Three Arrows Capital filed for bankruptcy in the United States at the end of June. The Singapore hedge fund had reportedly borrowed heavily to speculate on leveraged cryptocurrency moves. The fund is said to have handled around ten billion US dollars at times, in April, according to court documents, three billion US dollars. When cryptocurrency prices fell and the TerraUSD stablecoin collapsed, in which Three Arrows was probably also significantly invested, the financial construction of the fund collapsed.

This also brought difficulties to other companies that had lent Three Arrows large sums of money. Last week, for example, the interest rate and credit platform Voyager Digital had to go bankrupt. At the end of June, the company had to report the non-payment of the crypto hedge fund Three Arrows Capital for 15,250 Bitcoin and 350 million units of the UDC stablecoin, the equivalent of more than 600 million euros today. In turn, Three Arrows is said to owe the service provider Blockchain.com US$270 million. Other companies affected by the bankruptcy blocked their clients’ funds until further notice.


(axk)

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