3AC BANKRUPTCY PROCESS FACES CHALLENGES AMID UNKNOWN WHEREABOUTS OF FOUNDERS

The implosion of Three Arrows Capital (3AC), once a prominent crypto hedge fund, continues to send ripples throughout the digital asset landscape.The 3AC bankruptcy process, already complex, is now facing significant hurdles primarily due to the elusive nature of its founders, Kyle Davies and Zhu Su.Their physical whereabouts remain unknown, fueling speculation that they are actively avoiding creditors and legal proceedings.This absence has severely hampered the efforts of liquidators to recover assets and properly investigate the circumstances surrounding 3AC's collapse.The situation has intensified legal battles, with liquidators seeking innovative methods, such as subpoenas via Twitter, to compel the founders' cooperation.This saga highlights the regulatory challenges within the crypto industry and the difficulties in holding individuals accountable in a decentralized financial system. Trusted News Discovery Since 2025. Global Edition. Sunday, JanuThe following sections will delve into the complexities of the 3AC bankruptcy, the legal strategies being employed, and the implications for the future of crypto regulation.

The Elusive Founders: A Major Obstacle in the 3AC Bankruptcy

One of the biggest roadblocks in the 3AC bankruptcy process is the inability to locate and engage with the fund's co-founders, Kyle Davies and Zhu Su. Liquidators for Three Arrows Capital (3AC) will have to present further documents in order to be granted permission to subpoena 3AC bankruptcy process faces challenges amid unknown whereabouts of founders By Cointelegraph - Index Investing NewsTheir disappearance has not only complicated asset recovery efforts but has also raised serious questions about transparency and accountability in the crypto industry.

• The liquidators appointed to oversee the bankruptcy proceedings claim that Davies and Zhu are potentially located in regions like Indonesia and the United Arab Emirates.
• These locations present challenges due to the difficulties in enforcing foreign court orders.
• Without the founders' cooperation, gaining a complete understanding of 3AC's financial dealings and the reasons for its collapse becomes exceedingly difficult.

Seeking Subpoenas via Social Media

In an unusual move, the liquidators are seeking permission to serve subpoenas to Davies and Zhu through Twitter. Related: Legal team for 3AC liquidators blast founders for shifting blame to FTX, media blitz amid bankruptcy Teneo, the liquidation firm in charge of the bankruptcy process, told Cointelegraph on Oct. 5 that it had custody of the nonfungible tokens moved from addresses related to Starry Night Capital, a fund launched by the co-founders of theThis reflects the desperate measures being considered to reach the missing founders. Liquidators for Three Arrows Capital (3AC) will have to present further documents to grant the permission to subpoena the now-bankrupt crypto hedge fund s founders through Twitter, according to a decision from judge Martin Glenn during a virtual hearing for the Southern District of New York Bankruptcy Court on Dec. 2.Judge Martin Glenn has requested further documentation before granting this permission, highlighting the legal complexities of serving subpoenas via social media.

Serving subpoenas via Twitter is a novel approach, reflecting the challenges of locating individuals in the digital age. The liquidators claim Zhu Su and Kyle Davies are located in Indonesia and the Emirates, where foreign court orders are difficult to enforce.The decision underscores the innovative strategies needed to navigate the complexities of the 3AC bankruptcy and the broader implications for legal proceedings in the crypto space.

Increasing Claims and Amended Filings in the FTX Bankruptcy

The 3AC bankruptcy is further intertwined with the collapse of FTX, another major player in the crypto industry. The liquidators claim Su Zhu and Kyle Davies are located in Indonesia and the United Arab Emirates, where foreign court orders are difficult to enforce. Liquidators for Three Arrows Capital (3AC) will have to present further documents in order to be granted permission to subpoena the now-bankrupt crypto hedge fund s founders through Twitter, according toLiquidators have amended their original proof of claim in the FTX bankruptcy proceedings, significantly increasing their claims.The initial claim of $120 million has been increased to a substantial $1.53 billion, indicating the extent of 3AC's exposure to FTX and the potential impact on creditors.

• The increased claim reflects a more comprehensive understanding of the financial relationships between 3AC and FTX.
• This also highlights the interconnectedness of various entities within the crypto ecosystem, where the failure of one can trigger a cascade of consequences.
• The amended filing underscores the importance of thorough investigation and asset tracing in complex bankruptcy cases.

Legal Battles and Accusations: Shifting the Blame

Adding fuel to the fire, the legal team representing the 3AC liquidators has accused the founders of attempting to shift blame for the company's collapse onto FTX and engaging in a media blitz to control the narrative.These accusations point to a contentious legal battle, further complicating the bankruptcy process.It is important to maintain focus on fact, and truth in these events.

Such accusations raise concerns about the transparency and honesty of the founders. 3AC is a Chinese crypto mining company, is still facing challenges in its bankruptcy process.The legal team argues that Davies and Zhu are attempting to deflect responsibility for their actions and mismanage of funds.This situation adds another layer of complexity to the already challenging bankruptcy proceedings, making it more difficult to determine the true causes of 3AC's insolvency and to recover assets for creditors. Related: Legal team for 3AC liquidators blast founders for shifting blame to FTX, media blitz amid bankruptcy Teneo, the liquidation firm in charge of the bankruptcy process, told Cointelegraph on Oct. 5 that it has custody of the NFTs moved from addresses related to Starry Night Capital, a fund launched by the co-founders of the hedge fund.The legal team is looking for accountability.

NFT Holdings and Starry Night Capital

Amidst the turmoil, Teneo, the liquidation firm overseeing the 3AC bankruptcy process, has confirmed that it has custody of the non-fungible tokens (NFTs) that were moved from addresses linked to Starry Night Capital, a fund launched by the co-founders of 3AC. 3AC bankruptcy process faces challenges amid unknown whereabouts of foundersThis is a notable development, as NFTs represent a potentially valuable asset that could be used to repay creditors.

• The possession of these NFTs could provide some relief to creditors who are owed substantial amounts of money.
• The liquidation of these NFTs would need to be carefully managed to maximize their value.
• The handling of Starry Night Capital's assets is just one piece of a much larger puzzle in the 3AC bankruptcy proceedings.

The Broader Implications for Crypto Regulation

The 3AC bankruptcy and the challenges associated with it highlight the need for clearer and more robust regulatory frameworks within the cryptocurrency industry. The United States Bankruptcy Court for the District of Delaware granted a motion allowing the joint liquidators of Three Arrows Capital (3AC) to amend their original proof of claim in the FTX bankruptcy proceedings. This increases their claims from $120 million to $1.53 billion.The lack of transparency, the difficulty in tracing assets, and the complexities of international jurisdictions all contribute to the difficulties in resolving this case. Secondo quanto deciso ieri dal giudice Martin Glenn durante un'udienza virtuale del Tribunale fallimentare del distretto meridionale di New York, i liquidatori di Three Arrows Capital (3AC) dovranno presentare ulteriori documenti per ottenere l'autorizzazione a citare in giudizio i fondatori del crypto hedge fund, ora fallito, tramite Twitter.This case is just one of many in this space.

• The incident underscores the risks associated with investing in unregulated or lightly regulated crypto entities.
• It also serves as a cautionary tale for investors to conduct thorough due diligence and understand the risks involved before investing in crypto assets.
• The 3AC collapse has added urgency to ongoing discussions about how to regulate the crypto industry effectively while fostering innovation.

What were the factors that led to 3AC's downfall?

Several factors contributed to 3AC's rapid downfall. The post 3AC bankruptcy process faces challenges amid unknown whereabouts of founders appeared first on CoinTelegraph. Bitcoin (COIN:BTCUSD) Historical Stock ChartThe most prominent include:

• Over-Leverage: 3AC was known for employing a highly leveraged trading strategy, borrowing significant amounts of capital to amplify potential returns.When market conditions turned unfavorable, this leverage exacerbated losses.
• Exposure to Terra/Luna Collapse: The collapse of the TerraUSD (UST) stablecoin and its sister token Luna in May 2022 had a devastating impact on 3AC, as the firm had substantial exposure to these assets.
• Contagion Effect: 3AC's insolvency triggered a ripple effect throughout the crypto industry, leading to liquidity issues and further losses for other companies that had lent money to or invested with 3AC.
• Poor Risk Management: Critics have pointed to 3AC's inadequate risk management practices, which failed to anticipate or mitigate the potential for significant losses.

What is the current status of the 3AC bankruptcy proceedings?

The 3AC bankruptcy proceedings are ongoing and remain complex. Menu. Home; Bitcoin Chart; Cryptocurrency News; Live PricesKey aspects of the current status include:

• Asset Recovery: Liquidators are actively working to identify and recover 3AC's assets, including crypto holdings, NFTs, and other investments.
• Creditor Claims: Creditors are filing claims to recover funds they are owed by 3AC. Liquidators for Three Arrows Capital (3AC) will have to present further documents in order to be granted permission to subpoena the now-bankrupt crypto hedge fund s founders through TwitterThe total amount of claims is substantial, and the recovery rate for creditors is uncertain.
• Legal Disputes: Legal battles are ongoing between liquidators, creditors, and potentially the founders of 3AC. Liquidators for Three Arrows Capital (3AC) will have to present further documents in order to be granted permission to subpoena the now-bankrupt crypto hedge fund s founders through Twitter, according to a decision from Judge Martin Glenn during a virtual hearing for the Southern District of New YoThese disputes are likely to further complicate and prolong the bankruptcy process.
• Regulatory Scrutiny: The 3AC collapse has attracted regulatory scrutiny, and authorities are likely to investigate the circumstances surrounding the firm's failure.

What can investors learn from the 3AC bankruptcy?

The 3AC bankruptcy offers several valuable lessons for investors in the cryptocurrency space:

• Diversify your investments: Avoid putting all your eggs in one basket.Diversifying your portfolio can help mitigate the risk of losses from any single investment.
• Understand leverage: Be cautious of highly leveraged investments, as they can amplify both potential gains and potential losses.
• Do your due diligence: Thoroughly research any crypto company or project before investing.Understand the risks involved and assess the management team's capabilities.
• Be aware of counterparty risk: Consider the risk that a counterparty (e.g., a lending platform or a hedge fund) may default on its obligations.
• Stay informed: Keep up-to-date on the latest developments in the crypto industry and be aware of potential risks and opportunities.

The Role of Transparency and Accountability

The 3AC debacle underscores the critical role of transparency and accountability in the crypto industry. Liquidators for Three Arrows Capital (3AC) will have to present further documents to grant the permission to subpoena the now-bankrupt crypto hedge funds founders through Twitter, according to a 3AC bankruptcy process faces challenges amid unknown whereabouts of foundersThe lack of transparency surrounding 3AC's operations made it difficult for investors and creditors to assess the firm's financial health and risk profile. The post 3AC bankruptcy process faces challenges amid unknown whereabouts of founders appeared first on CoinTelegraph. Bitcoin (COIN:BTCUSD) Gr fico Hist rico do AtivoThis opacity ultimately contributed to the severity of the collapse.Moving forward, greater transparency is essential to build trust and confidence in the crypto market. Hilton Stock Hits All-Time High as CEO Says FebruRegulations must be in place. Liquidators for Three Arrows Capital (3AC) will have to present further documents in order to be granted permission to subpoena the now-bankrupt crypto hedge fund s founders through Twitter, according to a decision from Judge Martin Glenn during a virtual hearing for the Southern District of New York Bankruptcy Court on Dec. 2.Regulations require transparency, so more regulations will improve the industry.

• Increased disclosure requirements: Crypto firms should be required to disclose more information about their financial positions, risk management practices, and investment strategies.
• Independent audits: Regular audits by independent firms can help verify the accuracy of financial statements and identify potential risks.
• Clear regulatory frameworks: Clear and consistent regulatory frameworks can help ensure that crypto firms are held accountable for their actions and that investors are protected.

The Future of Crypto Hedge Funds

The 3AC bankruptcy has cast a shadow over the future of crypto hedge funds.While these funds can offer investors access to sophisticated trading strategies and potentially higher returns, they also come with significant risks.As the crypto industry matures, crypto hedge funds will need to adapt to evolving regulatory requirements and investor expectations.They must have a legal process in place.

• Enhanced risk management: Crypto hedge funds must prioritize robust risk management practices to mitigate the potential for losses.
• Greater transparency: Funds should be more transparent about their investment strategies and risk profiles.
• Compliance with regulations: Funds must comply with all applicable regulations and licensing requirements.

Conclusion: Navigating the Aftermath of 3AC's Collapse

The 3AC bankruptcy process remains fraught with challenges, primarily due to the unknown whereabouts of its founders and the complexities of asset recovery.The legal battles, the increased claims in the FTX bankruptcy, and the regulatory implications all contribute to a complex and uncertain situation.The 3AC bankruptcy process faces challenges amid unknown whereabouts of founders, and this highlights the critical need for greater transparency, accountability, and regulatory oversight within the crypto industry. Market Cap: $2,889,575,600,015.51 24h Vol: $218,420,776,960.22 BTC Dominance: 57.73% Home; Coins MarketCap; Crypto Exchanges; Crypto Calculator; Top Gainers and LoserThe lessons learned from 3AC's downfall should serve as a wake-up call for investors and regulators alike.The future of crypto depends on creating a more secure and sustainable ecosystem that protects investors while fostering innovation. Related: Legal team for 3AC liquidators blast founders for shifting blame to FTX, media blitz amid bankruptcy. Teneo, the liquidation firm in charge of the bankruptcy process, told Cointelegraph on Oct. 5 that it has custody of the NFTs moved from addresses related to Starry Night Capital, a fund launched by the co-founders of the hedge fund.Key takeaways from this saga include the importance of due diligence, understanding leverage, and recognizing the interconnectedness of the crypto market.As the industry continues to evolve, it is essential to promote responsible investment practices and foster a culture of transparency and accountability.Furthermore, it is crucial to support the efforts of liquidators and regulators to ensure that creditors are treated fairly and that the true causes of 3AC's collapse are uncovered.By addressing these challenges, the crypto industry can build a stronger foundation for future growth and development.Learn the process for bankruptcy.