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Court Grants Three Arrows Creditors Emergency Hearing as Founders Accused of Not Cooperating With Liquidation Proceeding

Sam Reynolds - Coindesk
2022-07-11 04:27
Where in the world are Su Zhu and Kyle Davies? Lawyers involved in the liquidation proceedings of Three Arrows Capital’s British Virgin Islands fund would certainly like to know, as the hedge fund founders have not been cooperative in the proceedings so far and their current location is unknown.
  • In court documents filed late Friday in New York, lawyers acting on behalf of the creditors said that the founders of the fund “have not yet begun to cooperate with the [proceeding] in any meaningful manner.”
  • The lawyers said that persons identifying themselves as “Su Zhu” and “Kyle” were present on an initial Zoom call, but their video and audio was turned off and they would not respond to questions posed directly to them, with only their legal representatives answering questions.
  • Lawyers for the creditors that visited Three Arrows’ Singapore office found it abandoned, according to court documents.
  • Concerns are mounting that assets belonging to Three Arrows, which are largely in the form of cash, crypto, and NFTs could be easily transferred.
  • Already, NFTs belonging to Three Arrows’ NFT fund Starry Night have been transferred to a new wallet for unexplained reasons.
  • The creditors are seeking to freeze Three Arrows’ assets. But first, they are requesting the court to compel Three Arrows’ founders to list out the fund’s assets.
  • They are also asking the court to subpoena the founders and have them provide a list of company assets including wallets it controls, bank accounts, digital assets in its possessions, derivatives contracts, securities, accounts receivables, and all company records.
  • A court hearing is scheduled for Tuesday morning in New York.
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