Three Arrows Capital (3AC) has moved approximately $10 million in USDT and $20 million in USDC into the cryptocurrency exchange, Kucoin. This is according to a recent update from PeckShieldAlert on July 5. The release sent out via the platform’s Twitter channel said that the transactions were made within the past 24 hours.
The $20 million USDT sent to Kucoin was made in two transactions. The first USDT transaction was sent at 1.49 AM, UTC, on July 5. The transaction value was $10 million, while the transaction fee was $1.63 in ether. This transaction was confirmed in 30 seconds.
The second USDT transaction log shows that the company sent the coins at 10:16 PM, UTC, on July 5. The total value of USDT sent was $10,322,889.92, with the transaction fee of $3.05 in ether. The transaction was confirmed in 52 seconds.
#PeckShieldAlert 3AC transferred ~10m $USDT and ~20m $USDC into Kucoin within the last 24 hour. pic.twitter.com/VxxrfQtrNt
— PeckShieldAlert (@PeckShieldAlert) July 5, 2022
Bankruptcy Filing in New York
3AC collapsed as the price of digital assets dropped due to a bear market. The chapter 15 bankruptcy filed by the crypto hedge fund company was the result of an order by a British Virgin Island court that ordered the liquidation of the company.
A court document filed in the US Bankruptcy Court, Southern District of New York, on July 1, shows that the representatives of 3AC sought relief under the Bankruptcy Act.
According to the court document,
“The Debtor is an investment firm incorporated in the BVI with a focus on trading cryptocurrency and other digital assets that was reported to have over $3 billion of assets under management as of April 2022. The Debtor’s business has collapsed in the wake of extreme fluctuations in cryptocurrency markets.”
The filing further sought to prevent seizure of 3AC’s assets pending the determination of the veracity of the company’s claims. it added that the representative was appointed by the BVI Court for the purpose of joint liquidation of the Debtor since June 27, 2022. The reliefs it states:
“seek to stay active efforts by individual creditors to seize assets and to preserve the status quo and afford the Foreign Representatives an opportunity stabilize the Debtor’s estate, preserve the Debtor’s assets, and conduct a complete investigation of the Debtor, claims against its estate, and its assets, including causes of action.”
Co-founders Location Currently Unknown
The location of the co-founders are unknown at this time after the company filed for bankruptcy. It is instructive to note that the company’s representatives stated that they are not aware of the current location of the co-founders of 3AC, Zhu Su and Kyle Davies.
The court filings continues:
“The Debtor was co-founded by Kyle Davies and Su Zhu. It had three directors: Davies, Zhu, and Mark James Dubois, a BVI resident. The Foreign Representatives understand and believe that while the Debtor has had certain operations in Singapore, Mr. Davies and Mr. Zhu’s current location remains unknown. They are rumored to have left Singapore.”