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Founders of hedge fund Three Arrows Capital went on run

2JDDJT9 Smartphone with logo of US investment company Three Arrows Capital Ltd. on screen in front of website. Focus on center-left of phone display.

Three Arrows Capital (TAC), a ten-year-old hedge fund, was founded by Wall Street currency traders Su Zhu and Kyle Davies. Until April this year, TAC managed about $3 billion in assets.

However, a sharp drop in the cryptocurrency market led to the fact that the fund suffered losses when liquidating exchange positions.

In June, due to the fund’s unprofitable activities litigation, the British Virgin Island’s court ordered the liquidation of Three Arrows Capital.

Lawyers also found TAC’s Singapore office empty, with employees from neighboring offices last seeing Three Arrows Capital staff in May or early June. The media also reported that Zhu was trying to sell his mansion in Singapore worth about $35 million, which he purchased in December 2021 through a trust fund in the name of one of his children.

Given that Davis and Zhu’s current whereabouts remain unknown, these factors have fueled rumors that they have left Singapore.

At the end of June, the Monetary Authority of Singapore (MAS) accused Three Arrows Capital of defrauding the regulator and failing to provide information about changes in management and shareholders.