Three Arrows Capital founders whereabouts not known: Lawyers

moneycontrol.com:

Su Zhu and Kyle Davies, the founders of Three Arrows Capital (3AC), the beleaguered crypto hedge fund, might have fled Singapore and their whereabouts are unknown, the firm’s lawyers said in its bankruptcy filing.

The filing in the United States Bankruptcy Court of the Southern District of New York stated that 3AC managed $3 billion in digital assets as of April 2022 and requested a stay on efforts by creditors to seize its assets.

“The foreign representatives understand and believe that while the debtor has had certain operations in Singapore, Mr Davies and Mr Zhu’s current location remains unknown. They are rumoured to have left Singapore,” according to the filing.

Singapore mansion

Su Zhu is said to be looking at selling his $35 million mansion in Singapore and having the proceeds sent to a bank in Dubai. According to a report by Bloomberg, the mansion, purchased in December 2021 for $35 million, has been up for sale for the past two weeks. The mansion is currently held under a trust belonging to one of his children.

The 3AC bankruptcy filing seeking a stay on efforts by creditors to seize its assets follows a liquidation order from a court in the British Virgin Islands. “On June 27, 2022, the debtor commenced a liquidation proceeding before the BVI court and that court has appointed the foreign representatives as joint liquidators of the debtor,” the filing stated.

Filing the petition to commence this Chapter 15 case will afford the foreign representatives an opportunity stabilise the debtor’s estate, preserve the debtor’s assets, and conduct a complete investigation of the debtor, claims against its estate, and its assets, it added.

Chapter 15 allows for cooperation between the US and foreign courts during bankruptcy