The drama surrounding Three Arrow Capital (3AC for short) takes a new turn. The two founders of one of the largest hedge funds in the crypto industry are nowhere to be found after their company went bankrupt. That reports Bloomberg.
A week ago, 3AC officially declared bankruptcy. According to court documents, 3AC was managing $10 billion worth of cryptocurrencies earlier this year. The company is now insolvent and has filed for bankruptcy. The authorities in Singapore and the USA are investigating the two founders, Kyle Davies and Zhu Su.
3AC’s offices have been deserted since May 2022
It is questionable whether the two founders were even present at the first hearing in Singapore. they took according to media reports Shared via zoom, with audio and video turned off. Only her lawyers answered questions from the court. The court’s liquidators were unable to enter the company’s locked offices in Singapore. According to neighbors, they have been orphaned since the end of May. Reuters found a stack of old and unopened mail outside the door.
The liquidators fear that the founders want to move their remaining assets, crypto like cash. According to media reports, there are already first signs of this: One of the founders is to sell real estate. and the $100 million collection of Starry Nights NFTs has been transferred to a new wallet for unknown reasons (their current value: five million US dollars).
The hedge fund bled after the Terra crash
The allegations against 3AC are joined by an opaque network of subsidiaries. They are registered in tax havens such as the Cayman Islands. research by Coindesk show: 3AC allegedly operated its own trading desk with Tai Ping Shan Capital (TPS) in the Virgin Islands. The spicy thing: Despite the insolvency proceedings, TPS Capital apparently continues to operate.
3AC is one of several major crypto companies that went bust in the wake of the market crash. Some crypto exchanges are still struggling with bankruptcy. In some cases, they have stopped paying out customers.
According to unconfirmed reports, 3AC speculated with massively leveraged bets. For example, she had invested billions in Terra. Within a week, the ecosystem crashed by 99 percent. A court case is pending in South Korea against the founder, Do Kwon, on charges including fraud.