3AC founders in hiding, offices abandoned as court filing cites fear that assets may be “disposed of”

A filing with the US Bankruptcy Court in Southern New York states that the Three Arrows Capital liquidators were unable to contact the founders “in a meaningful way.”

Founders Zhu Su and Kyle Livingstone Davies are currently unknown as they remain hidden from the spotlight.

“The physical location of the debtor founders Zhu Su and Kyle Livingstone Davies is currently unknown.”

Concern 3 AC may dispose of funds

The document further stated that liquidators were truly concerned that 3AC could “disposal” its assets outside of bankruptcy proceedings.

“The debtor’s assets may be transferred or otherwise disposed of by a party other than the court-appointed foreign representative to harm the debtor, its creditors, and all other interested parties. There is a real imminent risk that there is. “

The liquidator said that due to the nature of 3AC’s business, crypto assets are “easily transferable” and therefore “risk increases”. The liquidator must “promote and carry out the orderly liquidation of its business and initiate the liquidation of its assets.”

The submission to the court on page 106 was submitted on Friday, July 8, requesting:

“Temporary relief to mitigate the risk of transfer or disposal of the debtor’s assets by a non-foreign party.”

If the investigation continues, one of the goals is to establish “the scope of the debtor’s trading activities and the circumstances that led to the debtor’s bankruptcy proceedings.”

Lack of cooperation

3AC has voluntarily initiated bankruptcy proceedings, but apparently refused to cooperate with the process. Neither ZhuSu nor Davies turned on the microphone or camera Instead of a Zoom call, the meeting request was rejected.

The meeting will require liquidators to access digital wallets owned by 3AC, and subsequent meetings will see if they will be delivered on July 11.

One of the liquidators, Christopher Farmer, visited Singapore to visit the 3AC office. Still, upon arrival, he said, “the office seemed empty except for some inactive computer screens.” Farmers also observed “unopened mail” and spoke to residents who confirmed that the office had been occupied in early June.

Official remedies requested by court submission include:

• Access to 3AC assets held in the US
• Suspension of right to transfer or dispose of assets outside the scope of court order
• Subpoena of Zhu Su and Davis
• Abandon the relief period and execute the order

The subpoena requires the founder to submit the following documents within 14 days:

As a basis for the request, the liquidator states the “real imminent risk” that the founder of 3AC may transfer the asset out of its control. As a result, creditors may not receive compensation for funds currently under the control of 3AC.