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- The founders of Three Arrows Capital are said to have fled Singapore.
- The crypto hedge fund went from $10 billion in assets under management to filing for Chapter 15 bankruptcy.
- A court document lists Su Zhu and Kelly Kaili Chen as creditors.
The legal team of struggling crypto hedge fund Three Arrows Capital (3AC) recently claimed that the company’s founders fled Singapore.
The crypto hedge fund was one of the companies hardest hit by the recent crypto crash, which forced them to file for Chapter 15 bankruptcy in a bid to protect their US assets from creditors in the country. That’s according to Bloomberg and CNBC. Representatives filed the case in a court in the Southern District of New York just over a week ago.
The bankruptcy filing did not end the crypto hedge fund’s woes, as a court in the British Isles ordered 3AC to be liquidated. This order came at the same time as Voyager Digital issued a notice of default to 3AC for its non-payment of its 15,250 Bitcoin (BTC) and 350 million USDC loan.
The court document also lists Su Zhu and Kelly Kaili Chen, who is the wife of co-founder Kyle Davies, as creditors of the company. This means they are on track to get paid before others, which is a common arrangement in early stage startups. However, the move is suspicious for 3AC, which has been around for just under a decade and was hyper profitable until recently.
Now that 3AC’s founders have fled Singapore, investors’ suspicions have been heightened that 3AC was an illegitimate operation. To add to this point, 3AC once boasted about having around $10 billion in assets under management, leaving some in the space to believe the recent bankruptcy filing was a cover for the breakout plan. founders.
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