Su Zhu and Kyle Davis From Three Arrows Capital Do Not Cooperate: Court Filing

The lawyers seeking emergency provisional relief said the founders of the beleaguered hedge fund, Three Arrows Capital, are nowhere to be found and “have not yet begun to cooperate with the Foreign Representatives in any meaningful manner.”

Lawyers Accuse 3AC Execs of Being Uncooperative

The nearly decade-old hedge fund was founded by former schoolmates and Wall Street currency traders Su Zhu and Kyle Davies. Up until April this year, the firm had nearly $3 billion in assets under management (AUM). However, after getting liquidated on many of its long positions, 3AC was ordered into liquidation by a British Virgin Islands court last month.

According to the most recent filing with the US Bankruptcy Court for the Southern District of New York, the lawyers involved in the proceeding said that the hedge fund founders have not been cooperative in the proceedings so far, and their whereabouts are unknown.

“The foreign representatives understand and believe that while the debtor has had certain operations in Singapore, Mr Davies and Mr Zhu’s current location remains unknown. They are rumored to have left Singapore.”

The lawyers acting on behalf of the creditors also said that persons identifying themselves as the two co-founders attended an initial call via Zoom, the filing mentioned. However, with the duo’s video and audio turned off and their respective legal representative answering questions on their behalf, speculations emerged if they were actually present during the proceeding.

Moreover, the lawyers also found the 3AC Singapore office to be abandoned and added that people in adjacent offices observed staff as recently as May or early June of this year.

Nowhere to be Found

After the unraveling of 3AC in mid-June, Zhu and Davies stayed away from Twitter. The latter did confirm that the company was looking for a bailout but has remained relatively quiet since then.

Zhu was also reported to be seeking to sell his Singapore mansion worth $35 million. The luxury mansion was purchased in December 2021 via a trust fund in the name of one of his children. It was put up for sale as a private deal for an undisclosed amount.

Lawyers are concerned about the transfer of 3AC’s assets, which mostly consist of cash, cryptocurrencies, and NFTs. It is important to note that dozens of high-priced NFTs belonging to Three Arrows-backed Starry Night Capital were reported to have been transferred to a single wallet.

Before freezing the firm’s assets, the lawyers asked the court to subpoena the co-founders and have them furnish details regarding their wallets, bank accounts, derivatives contracts, securities, and other company records.