According to court records, liquidators are worried that Three Arrows Capital (3AC) founders may be relocating assets out of reach of creditors.

3AC doesn’t seem to be complying with its liquidators, at least not yet. Liquidator Russel Crumpler, Su Zhu, and Kyle Davies wrote a 1,157-page document detailing how crypto hedge company 3AC’s co-founders and management refused to comply with creditors and liquidators.

Evidence that Zhu is making moves to liquidate assets has concerned Crumpler.

Although 3AC had filed for bankruptcy on its own, neither Davies nor Zhu had contacted the liquidators since their appointment on June 27. According to Crumpler, Zhu and Davies filed 3AC for bankruptcy without informing the other director, Mark James Dubois, or their creditors.

When the liquidators arrived on June 30, they discovered the 3AC Singapore office had been left empty and locked. It was only on July 6 that 3AC’s previous attorneys, as well as Davies and Zhu, had a Zoom call from lawyers in which persons who identified themselves as Su Zhu and Kyle were present, although muted and off cameras.

The Cayman Islands-based Tai Ping Shan Limited received $31.6 million in bitcoin, while an unnamed wallet received $10.9 million, according to Crumpler. He said that he had no idea where the money was going at the moment.

The CEO was particularly critical of Zhu and Davies, fearing that business funds were being diverted to opulent personal expenses.

For example, Crumpler thinks Zhu and Davies may have paid for a $50 million boat with borrowed money and cites indicators that Zhu may be planning to sell one of his multimillion-dollar homes. Singapore is where he lives. Three additional people have access to Crumpler’s different portfolios, according to the business.

After the 3AC founders were detained, their attorneys claimed that threats had been made against the Davies and Zhu families and that they had cooperated in their investigation with Singapore’s central bank. get a written reprimand for making misleading statements.

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