The Court’s Green Light

A U.S. court just gave liquidators the thumbs-up to track down the elusive founders of the notorious Three Arrows Capital (3AC), Su Zhu and Kyle Davies. This decision is akin to approving a scavenger hunt where the prize is a gaping hole in the crypto market rather than a treasure chest of doubloons.

Where in the World Are Zhu and Davies?

As of now, counsel for the liquidators, Adam Goldberg, has practically accepted the fact that finding Zhu or Davies is like looking for a needle in a haystack—if that haystack was made of complex financial manipulations and crypto wallets. With fears bubbling that these founders might be quietly cashing in on tens of millions of dollars worth of assets, this situation is more precarious than a cat on a hot tin roof.

Liquidator Missions: Not Just for Fun

What’s a liquidator’s job, you ask? It’s the slightly grim reality where professionals assess the value of an insolvent company or individual, and say, “Let’s see what we can sell to pay off debts.” However, they might find themselves in deep waters when the crypto assets involved are as slippery as an eel. With 3AC’s assets potentially floating around in crypto wallets, jurisdictional questions may complicate matters more than a two-headed coin toss.

Jurisdictional Jigs and Concerns

Judge Martin Glenn didn’t mince words when discussing the “tricky issues” around extracting crypto funds. It’s like trying to retrieve stars from the sky—complex and intangible. Goldberg insists that the crypto wallets, assumed to hold a portion of 3AC’s vanished billions, are under U.S. jurisdiction. He stated, “This motion is a warning shot indicating the liquidators are in control now, folks.” A bold proclamation in what feels like a feudal struggle over digital assets.

The Fallout: A Ripple Effect

Three Arrows Capital, once a shining star in the investment world with over $18 billion in assets last spring, has now danced itself into a series of defaults totaling $1.5 billion to crypto lenders like Voyager Digital and BlockFi. Subsequently, Voyager’s bankruptcy filing and BlockFi’s precarious position have left many itching for answers. In a plot twist worthy of a soap opera, Zhu recently resurfaced—briefly—on Twitter, decrying the liquidators. It seems silence is golden, but it is an expensive luxury they may no longer afford.

Conclusion: The Endless Adventures of 3AC

As this drama unfolds, we’re left wondering if Zhu and Davies will waltz back into the spotlight, or remain in the shadows of the crypto wilderness. Trackers and legal eagles are undoubtedly primed for this high-stakes chase. Will they find their mystery quarry and recover what’s lost, or is this a tale of faded brilliance in the world of crypto?