Founders of bankrupt crypto hedge fund 3AC go missing, as investors try to recoup assets
Summary
The co-founders of failed crypto hedge fund Three Arrows Capital appear to be on the run from creditors, according to court documents recently filed in New York. Lawyers representing the creditors say the physical whereabouts of Zhu Su and Kyle Davies, who started Three Arrows in 2012, are "currently unknown," ahead of a hearing that is scheduled for 9 a.m. On July 1, the firm filed for Chapter 15 bankruptcy protection from U.S. creditors in the Southern District of New York, after a plunge in cryptocurrencies and the collapse of the terraUSD (UST) stablecoin project wiped out its assets. According to Fridays court filing, Zhu and Davies, both ex-traders for Credit Suisse, participated in an introductory Zoom call last week to discuss basic steps to preserve their assets. Teneos Russell Crumpler, who was tasked with helping to facilitate the bankruptcy process, said in a sworn statement that there is a "real risk" that 3ACs assets would disappear, "absent immediate authority to pursue discovery."