The SEC And CFTC Are Starting To Beat The Founder Of Three Arrows Capital

US regulators are investigating Three Arrows Capital. (Photo; Doc. InvestorPlace)

JAKARTA The bankruptcy of the Three Arrows Capital (3AC) hedge fund company after the collapse of Terra LUNA a few months ago has attracted the attention of US regulators, the Securities and Exchange Commission (SEC) and the Futures Commodity Trading Commission (CFTC).

The two regulators are reportedly investigating the Hedge fund Three Arrows Capital. The SEC and CFTC intend to find out whether the Singapore-based crypto company has violated regulations and laws that should have been adhered to, Bloomberg reported.

According to the report, the source of the information indicated the US regulator suspected that 3AC could mislead clients of the company's balance sheet and did not reveal properly why the funds were not registered with the financial regulatory body.

In late July, Kyle Davies and Su Zhu, founders of Three Arrows Capital, opened their voices in an interview with Bloomberg that broke their silence about their alleged escape. Crypto investors argue that they should disappear from the public radar as the two founders receive a number of death threats after a court of the British Virgin Islands ordered them to file bankruptcy and liquidate all assets owned by 3AC.

During the interview, the two founders clarified that despite being in an unknown location, they had communicated with relevant authorities since the first day. However, according to the lawyer responsible for liquidation, none of the founders were cooperative.

Previously, Bloomberg reported that, Teneo, the company responsible for liquidated 3AC funds, should seek permission from US judges to notify the founders via Twitter and their emails after not being able to contact them via regular communication channels. To date, no single founder of Three Arrows Capital has responded to a message from Teneo.

Zhu and Davies have not fully cooperated with the investigation after hedge funds exploded months ago, according to liquidators. After early Zoom calls in July, Zhu and Davies only spoke to liquidators once a few months later, in a separate video conference, "the report said, as quoted by CryptoPotato.