The founders of Singaporean cryptocurrency hedge fund Three Arrows Capital have gone missing, according to a Friday filing by the appointed liquidators of the company, with potentially $3 billion in assets missing and “readily transferable.”

Zhu Su and Kyle Davies, the two founders of the crypto hedge fund Three Arrows Capital, have disappeared, and the appointed liquidators of the company found no files, assets, or computers in the fund’s office in Singapore, according to Decrypt.

Three Arrows Capital had declared bankruptcy early in June after fellow crypto company Voyager Digital had declared bankruptcy with over $650 million in loans unpaid to Three Arrows, Reuters reported.

Russell Crumpler and Christopher Farmer, the two liquidators assigned to wind down operations for the firm, asked a court in Manhattan to force Zhu and Davies to participate in the liquidation proceedings, warning them that many of the cash and digital assets of Three Arrows could be easily transferable to private accounts, CNBC reported.

“That risk is heightened because a substantial portion of the Debtor’s assets are comprised of cash and digital assets, such as cryptocurrencies and non-fungible tokens, that are readily transferrable,” Crumpler said.

Three Arrows Capital, as recently as March 2022, was worth over $10 billion in assets. Their insolvency came after a large drop in cryptocurrency prices in June set off a series of crypto companies declaring their insolvency or bankruptcy to creditors.

Many creditors reportedly had a stake at the firm when the drop-off in prices and bankruptcy declaration occurred, with companies like tied up to hundreds of millions of dollars in loans given to Three Arrows Capital that the company will now be unable to pay. The other creditors have been kept anonymous due to a request to the court.

Zhu and Davies’ whereabouts is unknown, but Zhu is reportedly trying to sell a mansion in Singapore worth tens of millions of dollars, and the two have reportedly ghosted the Singaporean law firm representing them at this time.

As crypto hedge fund Three Arrows Capital faces bankruptcy proceedings, the two owners of the company have reportedly gone missing with the remaining $3 billion in assets of the company. This is a representational image. Kanchanara/Unsplash.

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