3AC crypto founders flee as multiple crypto Ponzi schemes collapse

3AC crypto founders flee as multiple crypto Ponzi schemes collapse

Wednesday, July 13, 2022 by: Ethan Huff
710VIEWS

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(Natural News) Three Arrows Capital (3AC) founders Zhu Su and Kyle Davies are nowhere to be found following the demise of the fraudulent company.
As we reported, 3AC failed to repay a loan on 15,250 bitcoins. And now that investors are trying to recoup their investments, the location of 3AC’s top dogs is “currently unknown.”
According to a court filing from Friday, July 8, Zhu and Davies have not yet begun to cooperate with the liquidation process “in any meaningful manner.” This suggests that the criminal duo is on the run from creditors.
Ahead of a hearing that was scheduled for 9 a.m. on Tuesday, July 12, lawyers representing the creditors said they cannot identify the physical whereabouts of either Zhu or Davies. The identity of these creditors is also currently unknown.
“Three Arrows, also known as 3AC, managed about $10 billion in assets as recently as March,” reported CNBC.
“On July 1, the firm filed for Chapter 15 bankruptcy protection from U.S. creditors in the Southern District of New York, after a plunge in cryptocurrencies and the collapse of the terraUSD (UST) stablecoin project wiped out its assets.”
“Prior to the bankruptcy filing, a court in the British Virgin Islands ordered the beleaguered fund to liquidate in order to pay back its debts.”
How many other crypto funds are scams in disguise?

Friday’s court filing further shows that Zhu and Davies, both former traders at Credit Suisse, participated in an introductory Zoom call last week to discuss strategies for preserving their assets.
https://www.naturalnews.com/images/B...hLiveShows.jpgNeither founder turned on his video camera during the call, however, and both of them remained muted for its entirety. All dialogue was conducted through counsel, and at the time that counsel said the duo “intended to cooperate.”
Things have since degraded to alleged criminals on the run after angry lenders who want their money back pursue a remedy in bankruptcy court. The global advisory firm Teneo was hired to help manage the liquidation process, which includes first trying to determine what assets remain to be liquidated.
Representatives helping to facilitate the liquidation requested immediate access during the Zoom call to 3AC’s officers, as well as all information related to the company’s bank accounts and digital wallets. Thus far, that access has not been granted as requested.
In late June when the fund’s liquidators arrived at 3AC’s Singapore office in an attempt to meet with Zhu and Davies, “the offices appeared vacant except for a number of inactive computer screens,” according to reports.
Upon arrival at the locked facility, liquidation facilitators also observed unopened mail addressed to 3AC that “appeared to have been pushed under the door or propped against the door.” The last time anyone was seen at the facility, according to neighboring offices, was in early June.
Russell Crumpler of Teneo warned in a sworn statement that there is a “real risk” that 3AC’s assets would disappear “absent immediate authority to pursue discovery.”
“That risk is heightened because a substantial portion of the Debtor’s assets are comprised of cash and digital assets, such as cryptocurrencies and non-fungible tokens, that are readily transferrable,” Crumpler added.
A well-known non-fungible token (NFT) collector and investor has already confirmed that one of 3AC’s NFTs was transferred to another crypto wallet during this time.
Creditors are requesting the court to suspend 3AC’s right to transfer or dispose of any assets. Attorneys are also asking that the court subpoena the founders, as well as others who may have further information about 3AC’s assets, including banks, crypto exchanges and counterparties.
“3AC’s insolvency has already had a major impact on the broader crypto market, because so many institutions had money wrapped up with the firm,” CNBC reported.
The latest cryptocurrency news can be found at CryptoCult.news.

Sources for this article include:
CNBC.com
NaturalNews.com


3AC crypto founders flee as multiple crypto Ponzi schemes collapse – NaturalNews.com