Founder of 3AC whereabouts unknown! Creditors request asset freeze, emergency hearing scheduled in New York court tomorrow

In this bear market, one of the most tragic casualties is the venture capital firm 3iQ Ventures (3AC), which filed for bankruptcy in New York on July 1st. The impact of its bankruptcy is significant, affecting many creditors. However, the founders have reportedly gone missing, causing complications in the liquidation process. To clarify the situation, an emergency hearing will be held in the New York court on July 12th.

3AC Files for Bankruptcy, Founders' Whereabouts Unknown

According to the application document, 3AC is registered in the British Virgin Islands, managing assets totaling $3 billion as of April 2022.

However, following the collapse of UST and LUNA, their highly leveraged investment strategy led to massive losses, with investment positions being heavily liquidated and receiving multiple default notices. The document indicates that although foreign liquidators believe 3AC is still conducting certain business activities in Singapore, the founders Su Zhu and Kyle Davies have gone missing, rumored to have left Singapore.

Emergency Hearing Scheduled for Tomorrow

According to a report by CoinDesk, in court documents filed last Friday in New York, lawyers representing creditors stated that the founders of the fund have not cooperated meaningfully with the litigation process and that during the initial Zoom call, individuals named Su Zhu and Kyle were present but had their cameras and microphones turned off throughout, not responding to direct questions and only answered through their legal representatives.

Furthermore, upon visiting 3AC's Singapore office, creditors' lawyers found it to be abandoned. The NFT fund Starry Night controlled by 3AC also had all its NFTs transferred to a new wallet for unknown reasons.

Based on data from DappRadar, the NFTs in this wallet are valued at around $4 million, leading the community to speculate that 3AC may be auctioning off these NFTs in order to raise funds.

Given the unfavorable circumstances, creditors are concerned about the recovery of their assets and have requested the court to freeze 3AC's assets and for the founders to provide a detailed list of assets. The New York court is expected to hold an emergency hearing on the morning of 7/12.