Prominent hedge fund Three Arrows Capital or 3AC was making headlines for all the wrong reasons. From its insolvency ordeal to its missing founders, the platform has been the talk of the crypto town. While other platforms like Celsius and Voyager began creating buzz, 3AC took a back seat. However now, the US regulators were trying to probe the downfall of the crypto hedge fund.
It was brought to light that the Commodity Futures Trading Commission [CFTC] and the Securities and Exchange Commission [SEC] decided to look into the troubled platform.
According to reports, these regulators were investigating whether 3AC had broken any laws by giving investors false information regarding its balance sheet. The company was also under examination for failing to register with government bodies.
While Singapore authorities were looking into the investigation regarding the downfall of the firm, not a lot of progress seems to have been made. Therefore, the SEC and CFTC would have decided to intervene.
Additionally, as this case continues to take several turns, the community seemed to be displeased with the fact that the US took so long to intervene.
3AC Liquidators pushing to subpoena founders Su Zhu and Kyle Davies
Just like the founders of any other troubled firm, 3AC’s Su Zhu and Kyle Davies were accused of being on the run. The whereabouts of the founders of the platform were unknown which further instilled anxiety among its liquidators and users.
As a result of this, a motion was filed to the United States Bankruptcy Court Southern District of New York last week. Teneo, an advisory firm noted that the liquidators had exhausted other methods of trying to get in touch with the founders. Currently, the firm is examining other ways to subpoena the missing founders.
The filing read,
“The Founders, through counsel, implausibly insist that the meager information provided to the Foreign Representatives [Teneo], which amounts to an incomplete list of assets and selective disclosures regarding the means to access certain digital assets electronically, represents all of the documents in their possession relating to the Debtor.”