In the fallen Three Arrows Capital, the founder ran away directly?

Reports have emerged that the founders of now-bankrupt Three Arrows Capital fled Singapore after the company filed for bankruptcy. 3AC is based in the country, and the current location of founders Kyle Davies and Su Zhu is unknown, according to a document. The document was filed in a court in New York.

Davies and Su Zhumissing

3AC is under pressure from multiple creditors, and the company's financial stress at this time is well documented. It applied for liquidation in the British Virgin Islands. The fact that the founder's current location is unknown adds heat to a case already at boiling point.

Lawyers for the creditors also said 3AC's Singapore office has been vacated. They also said the founders have not cooperated with the investigation and even turned off the audio and video during the Zoom call.

At one point, 3AC managed more than $3 billion in assets — a figure that has fallen sharply since the market crash. There are also rumors that Su Zhu sold his mansion in Singapore for $35 million. The funds are believed to have been transferred to Dubai.

A lack of cooperation could make things worse for 3AC. Creditors desperately need some compensation, but a lack of cooperation doesn't bode well. As such, they are seeking to freeze 3AC's assets, which appear to be on the move -- a development that would rightfully irritate investors.

3AC debacle sparks fear and anger

Creditors seeking a quick resolution to the matter include Deribit and Blockchain.com. The Monetary Authority of Singapore has sharply criticized the company, saying it used misleading information.

At the same time, Voyager also suffered the loss of 3AC. The company has filed for Chapter 11 bankruptcy, and its shares have also fallen sharply. The most worrying aspect of this development is that customers of the platform may not be able to get all their cryptocurrencies back.

As the fallout from 3AC's downfall does not appear to be over, other platforms and companies will remain vigilant. Many take it as a lesson and take precautions when working in the market in the future.