3AC creditors flag lack of dialogue with hedge fund founders

The assets of Three Arrows Capital (3AC) could “transfer or otherwise dispose of” before the company is wound up. Such concerns were raised by creditors’ representatives, according to CoinDesk.

Su Zhu and Kyle Davis contacted the plaintiffs’ lawyers via Zoom without video, but only their lawyers answered questions addressed to them. The founders’ whereabouts are currently unknown. The Singapore office of Three Arrows Capital is not functioning, according to the filing.

As of now, the NFT affiliated with 3AC’s Starry Night Capital has been moved to a new address.

Creditors are seeking seizure of the hedge fund’s assets after the founders provided a list. It may include wallets, bank accounts, cryptocurrencies, derivative contracts, securities, and accounts receivable. To this end, the plaintiffs have sought to summon the founders to court.

The first hearing is scheduled for July 12.

Earlier it was reported that 3AC continues active trading via an offshore trading service.

In June, amid the cryptocurrency market downturn, rumours circulated about Three Arrows Capital’s insolvency. The trading firm 8 Blocks Capital accused the hedge fund of using client funds to cover margin calls.

Crypto broker Voyager Digital sent 3AC a notice of default due to non-payment of the loan.

The British Virgin Islands court ordered the hedge fund to be liquidated, and the Monetary Authority of Singapore issued Three Arrows Capital a reprimand for providing false information and for exceeding the permitted threshold of assets under management.

In early July, Three Arrows Capital filed a bankruptcy petition in a New York court.

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