The crypto community is enraged as rumors started to fly in saying Three Arrows Capital (3AC) co-founders Su Zhu and Kyle Davies have apparently fled Singapore and are not “cooperating” with the liquidations proceedings.
The fund’s founders, according to lawyers of the legal firm Latham & Watkins representing the 3AC creditors, “have not yet begun to cooperate with the [proceeding] in any meaningful manner.”
As per the filing, Su Zhu and Kyle were present in the zoom call with the advisors, but their video and audio were muted and they refused to address inquiries made to them directly.
The 3AC creditors believe the fund’s assets could be “transferred or otherwise disposed of” before they get their share since 3AC’s assets including cash, crypto, and NFTs are relatively liquidated.
The court has granted an emergency hearing scheduled to be conducted Tuesday morning in New York amid 3AC creditors’ rising concerns.
“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 rumored to have left Singapore,” the petition notes.
According to the court filing, when the creditors’ attorneys went to visit Three Arrows’ Singapore office, they discovered it to be deserted.
Based on Zhu Su’s Twitter profile location and information that Three Arrows Capital planned to relocate its headquarters from Singapore to Dubai, there has been widespread conjecture that both Su and Davies are currently residing in Dubai.
Last week, Three Arrows Capital filed for Chapter 15 bankruptcy to prevent creditors in the United States from seizing a company’s assets. Even before that, 3AC co-founder Su Zhu was planning to sell his Singapore house thus confirming their plans to flee the country.
