Liquidators for crypto hedge fund Three Arrows Capital say they can’t find founders

Illustration by Alex Castro / The Verge

Where in the world are they? Three Arrows Capital's founders are nowhere to be found, according to officials who are trying to liquidate the company. According to a court document filed Friday, the whereabouts of the two men are unknown, and they have not received any meaningful cooperation from them.

The Singapore-based 3AC filed for Chapter 15 in the US in order to protect their assets. The news of the bankruptcy filing came after 3AC failed to repay a $670 million loan, which has since been restructured. The company failed to repay $270 million to the exchange. Business management company Teneo was ordered by a British Virgin Islands court to oversee 3AC'sliquidation.

Two senior directors at Teneo say they have not been able to get in touch with the two people. According to the court filing, the people on the call identified themselves as Su Zhu and Kyle, but their video was turned off, and neither of them spoke.

Representatives from a Singapore-based legal agency were used to communicate during the call. According to Farmer, he tried to locate Zhu and Davies at the 3AC headquarters in Singapore, only to find a locked door and a pile of mail. According to the filing, Zhu may be attempting to sell his mansion in Singapore.

There is an "imminent risk" that the duo could try to transfer the company's funds elsewhere. A large portion of the debtor's assets are comprised of cash and digital assets that are readily transferrable, which increases the risk of the case. If any disposition of the debtor's assets were to take place during the interim period, the foreign representatives would be irreparably hurt.

It isn't unusual for Davies and Zhu to disappear. After the exchange stopped trading, users couldn't figure out how to file a lawsuit. The CEO of the exchange died and his clients' funds were missing. Michael Patryn was a former executive of the Quadriga.

An emergency hearing will be held on July 12th to address 3AC's situation. A lot of damage has been done to the market by the collapse of 3AC. Babel Finance and Celcius have both been affected by the turbulent market.