Three Arrows Founders' Whereabouts Are Unknown, Foiling Liquidators (bloomberg.com) 29
The founders of bankrupt crypto hedge fund Three Arrows Capital haven't been cooperating in the firm's liquidation process and their whereabouts were unknown as of Friday, according to court papers. From a report: Representatives tapped to liquidate Three Arrows by a British Virgin Islands judge had "not yet received any meaningful cooperation" from Kyle Davies and Zhu Su, lawyers said in US bankruptcy court filings. Advisory firm Teneo is attempting to round up and preserve the assets of the hedge fund. Lawyers for Zhu and Davies told Three Arrows' liquidators that the two intend to cooperate. A meeting between the liquidators and attorneys is scheduled for Monday, while a court hearing is set for Tuesday. The liquidators, meanwhile are trying prevent the potential "dissipation" of the fund's assets, Russell Crumpler of Teneo said in a sworn declaration. "Here, 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 transferable," lawyers for the liquidators said in court papers.
Go on... (Score:5, Funny)
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Money is the root of all evil today.
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I know that money is the root of all evil
Do funny things to some people
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I forgot to include, "so they say". And so I broke the lyric chain... dammit. I'm better than that.
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Money + Authoritarianism.
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"I reckon ther didn't check old missoura. i feaed they runnof and joined the red legs...!"
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Re:Go on... (Score:5, Insightful)
Take the money and run!
These places are run by Get Rich Quick people. They had a choice:
a) Transfer the money offshore then vanish for a very long holiday on a nice beach somewhere until the next scam comes along.
b) Stay around for years of paperwork, dates in court, asset siezures, etc.
Which option did anybody expect them to take?
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Thankfully the law tends to have a long memory when money is involved.
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The places are run by get-rich-quick people, and many of the customers also take this approach. Get rich quick schemes are a bad idea for anyone. The only people who make them work, are the sleazebags.
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Here I'm alive
Everything all of the time
It's hard to have sympathy anymore. (Score:1)
Having said that, still find these guys and lock them up forever.
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Nah. Just make them pay back the losses caused by their hubris and mismanagement.
(Which is all of them :)
Re:It's hard to have sympathy anymore. (Score:4, Insightful)
This isn't hubris and mismanagement; it's fraud. Maybe one could believe it was just hubris when the whole thing collapsed. When the "responsible" parties disappear instead of doing their best for their clients, it's fraud.
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Failure to appear before the court probably.
Of course, this assumes that they were ever served with a summons.
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Lock them up? Based on what?
Just because they went bankrupt doesn't mean it was a scam or that something criminal was done. Lots of legitimate businesses fold when markets crash. Especially in environments that are highly risky from the start.
I bet you that the people running this had quite a lot of money squirreled away and had already used it to buy luxury goods that they didn't want confiscated.
It probably wasn't even true bankruptcy, just a really bad cash flow problem caused by a lot of people trying to cash out at once. Seems like the owners have decided to abscond rather than liquidate the assets.
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No, it's the involvement of cryptocurrency that tells us this. That is why we call crypto bankruptcies "rugpulls."
That's surprising (Score:5, Funny)
You'd think that someone associated with "three arrows" would leave some pointers behind.
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Re:That's surprising (Score:5, Funny)
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Apparently, uninitialized pointers can cause problems. Who knew?
They're usually easier to locate than this.
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I'm sure a number of investor's bank accounts have seg faulted and more than one investor has experienced a surprise "core dump" in their back end process.
Imagine That (Score:2)
Seriously - is something like this that hard to foresee? What are scam artists supposed to do⦠just hand back everything they stole from people?
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The probably literally CAN'T "just hand back everything they stole from people?". There's generally a lot of friction in the process, if only lawyer's fees.
Surprised Pikachu face (Score:2)
You mean scam artists have taken their ill-gotten gains and gone into hiding? How so very odd.
Wait, you mean crypto's a fraud? (Score:3)
No, no, it's *so* much better than "fiat" money, and safer, and....
So, let's see, people heavily into crypto: crooks and suckers.