3AC Founders Reportedly Fled Singapore in Wake of Bankruptcy

2022.07.11 07:06

3AC Founders Reportedly Fled Singapore in Wake of Bankruptcy

• Three Arrows Capital founders reportedly fled from Singapore.
• The crypto hedge fund went from $10 billion AUM to filing for chapter 15 bankruptcy.
• A court document lists Su Zhu and Kelly Kaili Chen as creditors.

The legal team for the embattled crypto hedge fund, Three Arrows Capital (3AC), have recently claimed that the founders of the company have fled Singapore.

The crypto hedge fund was one of the firms impacted the hardest by the recent crypto crash, resulting in them having to file for Chapter 15 bankruptcy in a bid to protect their US assets from creditors in the country. This is according to Bloomberg and CNBC. Representatives made the filing in a Southern District New York court just over a week ago.

Filing for bankruptcy did not put an end to the crypto hedge fund’s woes as a British Islands court ordered to liquidate 3AC. This order came at the same time that Voyager Digital issued a notice of default to 3AC for its failure to pay 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 the co-founder Kyle Davies, as company creditors. This means that they are on track to be paid before others, which is an arrangement common in early-stage startups. However, the move is suspicious for 3AC, which has been around for just under a decade and hyper-profitable until recently.

Now that the founders of 3AC have fled Singapore, investor suspicions have been strengthened that 3AC was an illegitimate operation. To add to this point, 3AC once boasted that it had around $10 billion worth of assets under management, leaving some in the space to believe that the recent bankruptcy filing was a cover up for the founders’ escape plan.