Liquidators of Three Arrows Capital are facing troubles after an advisory firm claimed that the whereabouts of the crypto hedge fund’s co-founders are unknown.
The whereabouts of Three Arrows co-founders Kyle Davies and Zhu Su are unknown, according to a «Bloomberg» report citing a filing by advisory firm Teneo which is expected to liquidate the remaining assets of the crypto hedge fund.
Teneo reportedly requested to freeze Three Arrow's assets and is also requesting a subpoena on Davies and Zhu to seek information on company records, assets, and other accounts.
Zoom Call
According to Teneo, they were last in contact with two individuals identifying themselves as Davies and Zhu on a Zoom call last week. The two users did not communicate with liquidators and kept their video and microphones turned off. As a result, Teneo deemed that the two had not provided «meaningful cooperation» throughout the liquidation process.
Three Arrows has the potential to clear its funds pre-liquidation as cryptocurrencies are immediately transferable, Teneo added. An emergency court hearing on the case is scheduled for today.
The insolvency of Three Arrows has destabilized other crypto lenders such as Voyager Digital, which filed for bankruptcy after the crypto hedge fund failed to repay a loan of about $650 million, and Blockchain.com, which also loaned $270 million.
