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The two founders of the investment fund Three Arrow Capital are said to have used the company’s money to own items “only billionaires dare to buy” in Singapore.
According to CNBC, Three Arrows Capital (3AC), based in Singapore, has a period of up to $ 10 billion in assets under management and is considered one of the world’s largest cryptocurrency investment funds with a top position. in the field of electronic money.
Right after The collapse of the Terra ecosystem with two tokens LUNA and UST in May causing great losses, in June, the market continued to correct, making the fund increasingly losing money. The volume of assets liquidated during this volatility is also an indirect factor pushing 3AC into bankruptcy.
The two co-founders Zhu Su and Kyle Davies were previously considered prestigious and influential names in the field of cryptocurrency. However, now, when the $10 billion investment fund suddenly collapsed, both have almost disappeared on social networks.
See also: Details of the collapse of one of the crypto giants Three Arrows Capital
Court documents obtained by Fortune show that Zhu Su and Kyle Davies, 35, lived lavish lives before going bankrupt. The two used the company’s money to buy one of the most expensive yachts in Singapore, worth 50 million USD. According to the plan, the yacht will be handed over in the next two months in Italy.
“Davies wants the yacht to be more impressive than those owned by Singapore’s richest billionaire. Zhu and his wife are said to have used the company’s money to buy two rare wooden villas in Singapore for $35 million last year. December of last year,” the filing reads.
Dailicoin quoted authorities as saying that it is highly likely that the two co-founders of 3AC will find a way to move their assets elsewhere. Most of the assets they still hold are cryptocurrencies and cash. Previously on June 14, 3AC transferred 31 million USDT and 900,000 USDC to Tai Ping Shan Limited in the Cayman Islands. This is a company owned by Zhu and Kelly Kaili Chen.
Meanwhile, court documents obtained by CNBC show that lawyers representing 3AC’s creditors have not been able to reach Su and Davies. The two co-founders have kept quiet and have made no move to indicate that they want to cooperate in returning the money to the partner.
According to court filings, Three Arrows Capital’s lawyers were able to contact their clients (founders Zhu Su and Kyle Davies), but were unable to locate them. Many rumors surrounding this incident said that these two people had fled Singapore.
The unit appointed by the court in the British Virgin Islands to liquidate 3AC’s assets said that while Zhu Su and Kyle Davies initially attended an online meeting to discuss further legal processes, they were did not turn on the camera nor turn off the mic, refused to answer the liquidator’s questions and showed a non-cooperative attitude in the following time. The liquidator also said that they do not know the current location of Zhu Su and Kyle Davies, thus expressing concern that the two founders will disperse the assets of the fund and disadvantage the creditors, especially when Three Arrows Capital’s assets include cash, cryptocurrencies, and NFTs, which are extremely liquid. The legal representative of the liquidator also attached a picture of Three Arrows Capital’s office in Singapore, which was locked and sealed, and there were many letters on the floor, but no recipients.
Founder Kyle Davies told the Wall Street Journal on June 17 that he was considering options to liquidate assets or negotiate with creditors to have more time to turn the money. However, according to the assertions of the fund’s creditors and insiders, Zhu Su and Kyle Davies have either ignored or kept silent when contacted since early June.
According to analysts, The reason for the bankruptcy of 3AC possibly due to the demise of the Luna project. In an earlier interview with the WSJ, 3AC said the company had purchased $200 million worth of Luna, while another report indicated it had invested up to $560 million. The Singapore court representative went to 3AC’s office but found only closed doors. The founders of 3AC are said to have fled just four days after investors requested a hearing in the US in early July.
Analysts believe that the collapse of Luna has dragged down the entire cryptocurrency market, and many investment funds have also been severely affected. “In the crypto world, there is no such thing as ‘too big to fail’ – too big to fail,” CNBC said.
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