{"id":1551071,"date":"2022-07-12T16:34:09","date_gmt":"2022-07-12T20:34:09","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1551071"},"modified":"2022-07-12T16:34:12","modified_gmt":"2022-07-12T20:34:12","slug":"bankrupt-crypto-entrepreneurs-nowhere-to-be-found-after-investors-come-knocking","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/bankrupt-crypto-entrepreneurs-nowhere-to-be-found-after-investors-come-knocking\/","title":{"rendered":"Bankrupt Crypto Entrepreneurs Nowhere To Be Found After Investors Come Knocking"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fbankrupt-crypto-entrepreneurs-nowhere-to-be-found-after-investors-come-knocking%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1551071&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Three Arrows Capital (3AC) founders Su Zhu and Kyle Davies are nowhere to be found after the <a href=\"https:\/\/www.dailywire.com\/topic\/cryptocurrency\">cryptocurrency<\/a> hedge fund went <a href=\"https:\/\/www.dailywire.com\/topic\/economy\">bankrupt<\/a>.<\/p>\n<p>Beyond filing for bankruptcy earlier in July, the Singapore-based company defaulted on a $670 million loan and failed to repay $270 million to virtual currency exchange Blockchain.com, according to <a href=\"https:\/\/www.theverge.com\/2022\/7\/11\/23204465\/three-arrows-capita-3ac-liquidators-crypto-hedge-fund-cant-find-founders-kyle-davies-su-zhu\">The Verge<\/a>, even as the company reportedly had $3 billion in assets under management as of April 2022.<\/p>\n<p>According to a July 8 <a href=\"https:\/\/www.documentcloud.org\/documents\/22083895-three-arrows-capital-liquidation\">court filing<\/a>, Russell Crumpler and Christopher Farmer \u2014 two senior directors at Teneo, the company managing 3AC\u2019s liquidation \u2014 have been unable to make meaningful contact with Zhu and Davies. The firm\u2019s problems occur as leading cryptocurrencies \u2014 <a href=\"https:\/\/www.dailywire.com\/news\/what-exactly-is-bitcoin-heres-how-the-worlds-largest-cryptocurrency-actually-works\">decentralized digital money<\/a> that can be transferred between users\u2019 virtual wallets \u2014 <a href=\"https:\/\/www.dailywire.com\/news\/bitcoin-plunges-below-20000-mark-as-crypto-freefall-continues\">plummet in price<\/a>. The price of <a href=\"http:\/\/dailywire.com\/topic\/bitcoin\">Bitcoin<\/a>, for instance, fell from around $48,400 at the end of December to roughly $19,600 as of Tuesday.<\/p>\n<p>The filing said that the liquidity of the firm\u2019s assets increases the likelihood that Zhu and Davies will try to move their funds before investors can access them. \u201cHere, that risk is heightened because a substantial portion of the Debtor\u2019s assets are comprised of cash and digital assets, such as cryptocurrencies and non-fungible tokens, that are readily transferrable,\u201d the document explained, noting that all parties involved \u201cwould be irreparably harmed if any disposition of the Debtor\u2019s assets were to occur during the provisional period.\u201d<\/p>\n<p>Crumpler and Farmer said in the filing that they at one point were invited by Advocatus, the firm representing the two entrepreneurs, to join a Zoom call. Though two users named \u201cSu Zhu\u201d and \u201cKyle Davies\u201d were present on the call, they remained on mute and did not turn on their cameras. Farmer claimed that he also attempted to locate the pair at company headquarters in Singapore but was met with a locked door and a pile of unopened mail. An emergency hearing is scheduled for July 12, according to <a href=\"https:\/\/www.reuters.com\/legal\/litigation\/three-arrows-liquidators-asks-us-court-force-crypto-founders-cooperate-2022-07-11\/\">Reuters<\/a>.<\/p>\n<p>Zhu broke his silence on Tuesday to <a href=\"https:\/\/fortune.com\/2022\/07\/12\/three-arrows-capital-3ac-founder-su-zhu-kyle-davies-insolvency-bankruptcy-court-administrator\/\">post<\/a> on social media that his \u201cgood faith\u201d to cooperate with the liquidators was met with \u201cbaiting.\u201d Letters from Advocatus included in his post claimed that Crumpler forfeited rights to acquire tokens from Israeli blockchain firm StarkWare.<\/p>\n<p>Indeed, 3AC is far from the only cryptocurrency firm that has experienced financial issues in recent months. Exchange platform Coinbase is <a href=\"https:\/\/www.dailywire.com\/news\/crypto-winter-coinbase-to-lay-off-nearly-one-fifth-of-staff\">preparing<\/a> to lay off 18% of its workforce.<\/p>\n<p>\u201cWe appear to be entering a recession after a 10+ year economic boom,\u201d Coinbase CEO Brian Armstrong said in a recent <a href=\"https:\/\/blog.coinbase.com\/a-message-from-coinbase-ceo-and-cofounder-brian-armstrong-578d76eedb12\">blog post<\/a>. \u201cA recession could lead to another crypto winter, and could last for an extended period\u2026 Coinbase has survived through four major crypto winters, and we\u2019ve created long-term success by carefully managing our spending through every down period. Down markets are challenging to navigate and require a different mindset.\u201d<\/p>\n<p>Cryptocurrencies are especially popular among younger Americans. The 2022 Investopedia Financial Literacy Survey indicated that 28% of Millennials \u2014 those between the ages of 26 and 41 \u2014 expect to <a href=\"https:\/\/www.dailywire.com\/news\/gen-z-millennials-are-relying-on-crypto-for-their-retirements\">use cryptocurrencies to support themselves<\/a> in their retirement. Nearly 20% of Gen Z \u2014 those between 18 and 25 \u2014 said the same.<\/p>\n<p>\u201cFor younger investors, cryptocurrency is clearly not just a fun asset to trade in order to make fast money,\u201d Investopedia editor-in-chief Caleb Silver said. \u201cThey are depending on generating returns from cryptocurrency to build wealth and fund their retirement, which is concerning given the lack of education around investing in crypto, and the fact it is still not regulated by the industry.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Three Arrows Capital (3AC) founders Su Zhu and Kyle Davies are nowhere to be found after the cryptocurrency hedge fund went bankrupt. Beyond filing for bankruptcy earlier in July, the Singapore-based company defaulted on a $670 million loan and failed to repay $270 million to virtual currency exchange Blockchain.com, according to The Verge, even as &#8230;<\/p>\n","protected":false},"author":99,"featured_media":1515415,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1551071","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1551071","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/99"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1551071"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1551071\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1515415"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1551071"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1551071"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1551071"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}