One of the co-founders of bankrupt crypto hedge fund Three Arrows Capital (3AC) has reportedly been arrested in an airport in Singapore. According to a new report by The Business Times, 3AC co-founder Su Zhu has been apprehended at the Changi airport as he attempted to leave Singapore. Zhu has received a four-month jail sentence […]
The post 3AC Co-Founder Zhu Su Arrested at Airport, Receives Four Month Jail Sentence for Contempt of Court: Report appeared first on The Daily Hodl.
On Wednesday, Sotheby’s, one of the world’s largest brokers of fine and decorative art, announced its plans to auction a number of non-fungible token (NFT) assets that were previously owned by the now-defunct crypto hedge fund Three Arrows Capital (3AC). The auction, called the “Grails” NFT collection, will take place during Marquee Sale Week at […]
According to recent court filings, Kyle Davies, co-founder of the defunct cryptocurrency hedge fund Three Arrows Capital (3AC), has allegedly failed to respond to a subpoena from the firm’s current liquidators, despite it being sent via Twitter. Representatives from advisory company Teneo state that Davies continues to ignore his obligations to Three Arrows. 3AC Liquidators […]
Reports indicate that the bankrupt crypto hedge fund Three Arrows Capital (3AC) is facing more trouble from liquidators and financial authorities from the U.S. Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC). The whereabouts of the hedge fund’s co-founders Su Zhu and Kyle Davis are still unknown and the court-appointed liquidator plans […]
Hundreds of non-fungible tokens (NFTs) collected by Starry Night Capital have been transferred to a new wallet. The NFT fund of the insolvent crypto hedge fund Three Arrows Capital (3AC) bought the tokens in 2021. 3AC filed for bankruptcy earlier this year, after taking a hit from the collapse of the Terra ecosystem and the […]
The founder of now-defunct crypto hedge fund Three Arrows Capital (3AC) is reportedly worried about facing jail time after a disagreement with court-appointed liquidators. According to a new report by Bloomberg, 3AC CEO Su Zhu delivered an affidavit accusing Teneo, the liquidation company in charge of 3AC’s assets, of misleading Singapore’s High Court about the […]
The post Three Arrows Capital Founder Worried About Jail Time After Massive Liquidation: Report appeared first on The Daily Hodl.
The counsel for liquidators said he didn’t know the current location of Zhu or Davies, alleging the duo have not provided "meaningful cooperation" with the liquidators.
A United States (U.S.) court has given liquidators permission to subpoena the founders of crypto investment firm Three Arrows Capital (3AC), including Su Zhu and Kyle Davies.
According to a report by Law360 on July 12, U.S. Bankruptcy Judge Martin Glenn issued an order on Tuesday allowing the subpoenas after being told by the counsel for the liquidators that the founders' whereabouts are unknown and there were fears they could be selling off tens of millions in assets.
The counsel, Adam Goldberg, said he didn’t know the current location of Zhu or Davies, alleging the duo have not provided "meaningful cooperation" with the liquidators.
Goldberg raised concerns that 3AC may be selling assets by pointing to media reports that a Singapore property worth “tens of millions” was being sold by Zhu.
A liquidator’s job is to assess the value of an insolvent company or individual and sell the assets in order to fulfill unpaid debts. Liquidators may have trouble collecting 3AC’s crypto assets if it does not have jurisdiction over the wallets.
Presiding Judge Martin Glenn acknowledged that extracting crypto funds from the firm presents “tricky issues” regarding the location of the firm’s crypto wallets.
Bloomberg reported on July 12 that Goldberg contends that the crypto wallets fall under U.S. jurisdiction and those assets are now subject to his client’s discretion. Goldberg said,
“A key part of this motion is to put the world on notice that it is the liquidators that are controlling the debtor’s assets at this stage.”
Three Arrows Capital (3AC) is a high-profile investment firm founded in 2012 and based in Singapore that boasted over $18 billion in assets under management as late as April, but may have lost a significant portion of that net worth after the crash of the LUNA token in May.
Since then, 3AC has defaulted on about $1.5 billion in loans from crypto lenders Voyager Digital and BlockFi.
3AC founders Zhu and Davies have also remained mostly radio silent since June 14, and their location has remained a mystery to the public.
Zhu broke his weeks-long silence on July 12 briefly through a Twitter post condemning the liquidators for baiting him by failing to make a purchase of Starkware tokens.
Since June, the layers of 3AC’s alleged dealings have been uncovered, leading to liquidations in the British Virgin Islands and financial calamities on various crypto platforms.
Related: Singapore reprimands 3AC for providing false information
3AC’s loan defaults have taken part of the blame for Voyager filing for bankruptcy and BlockFi being forced into a position where it could get bought out by FTX.US crypto exchange. 3AC also filed for Chapter 15 bankruptcy on July 1.
