Since filing for insolvency, the popular crypto hedge fund Three Arrow Capital (3AC) has been making headlines in the crypto space. After filing for bankruptcy, the co-founders of 3AC appear to be fleeing from the creditors, according to court documents furnished in New York.
The Lawyers of creditors claimed that they are unable to track the whereabouts of Kyle Davies and Zhu Su, the co-founders of crypto hedge fund 3AC. According to a CNBC report, the physical presence of both co-founders is “currently undetermined” ahead of a hearing in court. This session was due to consider the next steps to take in the procedure for liquidation. The documents, filed on Friday evening, further claim that the founders haven’t yet started to engage with this process “in any meaningful way.”
3AC was a popular crypto hedge fund with assets worth $10 billion in March 2022. While there were many factors that contributed to the decline of this crypto firm, its considerable exposure to the collapse of TerraLuna was significantly responsible for its disintegration. 3AC filed for Chapter 15 bankruptcy protection on July 1 after receiving liquidation orders from a British Virgin Islands court.
According to the court filing filed on Friday, Zhu, and Davies, both former traders of Credit Suisse, participated in an initial call on a Zoom phone call this week to discuss the basic ways to safeguard their assets. The founders did not turn on the footage, while both were silent throughout the call, and all conversations were taken by counsel. Their lawyers stated, in the beginning, that the two “intended to work together.”
The bankruptcy of 3AC has impacted many other crypto lending firms. Crypto lender Voyager massively hit and ultimately filed for bankruptcy after 3AC failed to initiate payment of a loan of 15,250 Bitcoins.
Gargi Sinha is working as Senior Journalist at Confea. She has completed her Masters in Journalism from Delhi University. She has interest in crypto and blockchain technology.