According to court records recently filed in New York, the co-founders of the defunct crypto hedge firm Three Arrows Capital seem to be evading creditors.
Russell Crumpler and Christopher Farmer, who were appointed by a British Virgin Islands court to serve as 3AC’s liquidators and wind down operations, reported in a July 8 filing with the U.S. Bankruptcy Court in New York’s Southern District that the whereabouts of Zhu Su and Kyle Davies “is currently unknown.”
This month, Singapore-based 3AC filed for Chapter 15 bankruptcy, a step meant to shield overseas corporations’ assets from US creditors. The bankruptcy petition became public knowledge when 3AC failed on a $670 million loan granted by crypto broker Voyager Digital, which has also recently declared bankruptcy. 3AC allegedly failed to return 270 million dollars to the cryptocurrency exchange Blockchain.com. The liquidation of 3AC was assigned to the business management firm Teneo by a court in the British Virgin Islands.
Now, 3AC is in bankruptcy court, where it faces irate lenders demanding repayment. Teneo, a global advising business, was appointed to assist oversee the liquidation, beginning with determining what remained.
There’s An “Imminent Risk” That The Duo Could Attempt To Transfer The Company’s Remaining Funds Elsewhere
According to court documents filed on Friday, former Credit Suisse traders Zhu and Davies participated in an initial Zoom call last week to discuss fundamental asset preservation measures. Both founders stayed silent for the course of the conversation, which was conducted via counsel. Their attorneys said that they “intended to comply” at the time.
The liquidation of 3AC was assigned to the business management firm Teneo by a court in the British Virgin Islands.
Russell Crumpler and Christopher Farmer, two senior directors of Teneo, assert that they have been unable to reach Zhu and Davies. Crumpler and Farmer say in their court statement that they attended a Zoom conversation with “persons representing themselves as ‘Su Zhu’ and ‘Kyle,'” but “their camera was turned off and they were on silent at all times, with neither of them answering despite being specifically asked questions.”
In addition, there is a “heightened danger” that Su and Davies may seek to move 3AC assets to new accounts or wallets since “a major amount” is “cash and transferrable digital assets.”
The liquidation representatives were alarmed after receiving an email from a legal firm apparently representing the founders on July 6. Crumpler and Farmer requested an immediate meeting but were refused. Instead, they agreed to a Zoom chat with Advocatus Legal LLP on July 8, which both the law firm and the founders did not attend.
Photo by Ehimetalor Akhere Unuabona on Unsplash.
© 2024 Cryptopress. For informational purposes only, not offered as advice of any kind.
