The cryptocurrency sector in Singapore is under threat after the recent collapse of crypto fund Three Arrows Capital (3AC) during the market downturn.
Now, after filing for bankruptcy, the crypto hedge fund founders Kyle Davies and Zhu Su have disappeared.
In southeast Asia’s financial hub, crypto players have been preparing for further legal issues following 3AC’s liquidation proceedings that were filed on July 8 with the US Bankruptcy Court in New York’s Southern District.
Consultancy firm Teneo confirmed that Christopher Farmer and Russell Crumpler were appointed as 3AC’s liquidators by The British Virgin Islands on June 27 to oversee the operation and attempt to recoup the lost assets.
Lawyers of both creditors reported that the physical whereabouts of Su and Davies were “currently unknown”, ahead of their 9am hearing to discuss the next steps in the fund’s liquidation process.
Many “cash and digital assets are ‘readily transferable’ thus, there is a ‘heightened risk’ of the on-the-run founders trying their luck at transferring the 3AC assets into new accounts or to a more “sustainable platform”, stated the filing.
During the current crypto crash, it hasn’t just been 3AC feeling the wrath of the market downturn. KuCoin’s native token took a tumble earlier this month after rumours it was unable to pay any of its debts.
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