A court filing highlights that 3AC founders Kyle Davies and Su Zhu’s current locations are unknown. It also expressed that the two founders refused to cooperate in the investigation. Creditors got concerned and now intend to freeze the currencies of the entity.
A legal proceeding recently highlighted that the current locations of 3AC founders Kyle Davies and Su Zhu remain unknown. This situation gets included in the already tense situation that the company faces due to formal closure. This liquidation happened because of its inability to pay its debts and other financial obligations.
A series of recent reports highlight that the founders of now-bankrupt Three Arrows Capital abandoned Singapore after the entity declared its bankruptcy status. 3AC had its headquarters in the nation, and according to a filing, the current location of founders Kyle Davies and Su Zhu is now unknown. The filing got issued in a court in New York.
Where in the world are Davies and Zhu?
3AC was under constant pressure from various creditors, and the financial strain of the entity had received proper documentation until now. The fact that the current whereabouts of the founders are unknown brings more struggles to a case that already has too many controversial points.
The creditors’ lawyers have also highlighted that the Singapore office of 3AC got abandoned since then. They also expressed that the two founders did not bring any contribution to solving this case and even stepped away from audio and video in Zoom calls.
3AC dealt with at least $3 billion in currencies. This number of funds has crumbled exponentially since the market decline. There have also been rumors that Zhu sold his expensive house in Singapore for about $35 million; the funds probably got sent to Dubai.
The absence of contribution could make this situation worse for 3AC. Creditors are angry and await retribution, but the lack of cooperation from the founders does not give any hope. These creditors now try to suspend 3AC assets, which appear to be taking effect and are a movement that would rightfully oppress investors.
3AC Fall Stokes Fears and Anger
The creditors are looking to solve the incident as soon as possible, and these efforts include Deribit and Blockchain.com. The Monetary Authority of Singapore stood firmly against the entity and expressed that it employed misleading information.
Meanwhile, Voyager Digital has also got harmed by the 3AC bankruptcy. The entity applied for chapter 11 bankruptcy and saw its shares suddenly collapse. Perhaps the most disturbing factor of this situation is that users might not see returns.
Other networks and entities will remain alert as the consequences of the 3AC Crashdown will be felt for a long time. Experts and investors observe this situation as a lesson and are applying new procedures to ensure their work in the market in the future.
3AC rapidly became a famous company due to its advantageous wagers on plummeting crypto prices. Su Zhu used to defend the supercycle thesis, where greater mainstream acceptance would lead to higher prices. These prices go beyond the reach of near-term bear markets.
By: Jenson Nuñez
