New to Shacknews? Signup for a Free Account

Already have an account?

Video Game Release Dates 2024Palworld Strategy GuideShacknews Direct: Introducing Bubbletron!Destiny 2 Complete Strategy Guide
Video Game Release Dates 2024
Palworld Strategy Guide
Shacknews Direct: Introducing Bubbletron!
Destiny 2 Complete Strategy Guide

3AC crypto hedge fund founders go missing, creditors say physical whereabouts 'currently unknown'

In a bizarre turn of events and after defaulting on a massive loan, the hedge fund founders of Three Arrows Capital have vanished.
TJ Denzer
TJ Denzer
Image via Three Arrows Capital
2

It’s been a wild and rough week for one of the more notable hedge funds in cryptocurrency. Three Arrows Capital (3AC) recently defaulted on a loan of capital and cryptocurrency valued in the hundreds of millions, pushing lender group Voyager into bankruptcy. However, now the founders of the Singapore-based 3AC have disappeared and creditors claim to be altogether unable to locate them.

The latest details of this ongoing story regarding Three Arrows Capital were shared by lawyers representing creditors affected by the hedge fund, as reported by CNBC. Zhu Su and Kyle Davies co-founded 3AC in 2012 and were scheduled to take part in a July 12 hearing which would have laid out the next steps in the liquidation of the company. However, both individuals did not appear and their whereabouts are reportedly unknown. 3AC filed for Chapter 15 bankruptcy at the beginning of July when a crash in cryptocurrency values and the collapse of the TerraUSD stablecoin wiped out 3AC’s assets.

Three Arrows Capital (3AC) founders Zhu Su (pictured) and Kyle Davies have seemingly gone missing during the process of the company's liquidation. [Image via Three Arrows Capital]
Three Arrows Capital (3AC) founders Zhu Su (pictured) and Kyle Davies have seemingly gone missing during the process of the company's liquidation. [Image via Three Arrows Capital]

At the order of a court in the British Virgin Islands, 3AC was going through the process of liquidation to pay back debts. This included defaulting on a $670 million loan which pushed major cryptocurrency group and lender Voyager Digital to file for bankruptcy. Up to this point, Zhu and Davies had worked with authorities as 3AC underwent liquidation in bankruptcy court. The founders shared through their lawyers previously that they “intended to cooperate.” Meanwhile, global advisory firm Teneo was hired to manage 3AC’s liquidation and determine what was left in assets for the company.

Even so, it appears that the matter has become even more complicated and perhaps even dire as 3AC’s founders have seemingly disappeared. Stay tuned as we continue to follow this story and other cryptocurrency news for further updates.

Senior News Editor
Senior News Editor

TJ Denzer is a player and writer with a passion for games that has dominated a lifetime. He found his way to the Shacknews roster in late 2019 and has worked his way to Senior News Editor since. Between news coverage, he also aides notably in livestream projects like the indie game-focused Indie-licious, the Shacknews Stimulus Games, and the Shacknews Dump. You can reach him at tj.denzer@shacknews.com and also find him on Twitter @JohnnyChugs.

Filed Under
From The Chatty
Refresh Go To Thread
Hello, Meet Lola