Liquidators overseeing the wind-down of Three Arrows Capital may soon try to force founders Kyle Davies and Su Zhu to help clean up the mess left behind by the crypto hedge fund’s collapse, Bloomberg News reported. Zhu and Davies have so far provided “rather selective and piecemeal disclosures” about the fund’s assets, attorney Adam Goldberg said on behalf of the liquidators in a bankruptcy hearing Thursday. Without further cooperation, lawyers will try to compel the founders to turn over more information with assistance from Bankruptcy Judge Martin Glenn, he said. “The founders have not made themselves available for any discussions or interviews with the liquidators, whether formal or informal,” Goldberg told Judge Glenn in a hearing yesterday. “They do continue to conceal their whereabouts.” The liquidators -- appointed by a judge in the British Virgin Islands -- have so far gained control of more than $40 million of the fund’s assets. But that’s a drop in the bucket compared to what Three Arrows owes creditors -- more than $2.8 billion of claims are already on file, and the figure is expected to rise significantly. The liquidators expect to ask Glenn for help compelling Zhu and Davies to hand over information in the coming days, Goldberg said.
