Bankrupt crypto hedge fund Three Arrows Capital (3AC) withdrew extra than $2 million fee of Ethereum from Binance on Sunday.

On-chain records shared by Lookonchain on Twitter confirmed that an address belonging to 3AC withdrew 2,000 ETH fee $2.38 million at around 9 pm ET on Dec. 18. This advise wallet address now holds $7.85 million fee of ETH.

The unexpected wallet exercise sparked discussions interior the crypto community as to why these funds had been being moved within the foremost catch 22 situation.

The hedge fund, which filed for chapter earlier this 300 and sixty five days, is within the midst of liquidation complaints, while its founders Kyle Davies and Su Zhu are allegedly being largely uncooperative within the formula. In a Dec. 3 chapter hearing, 3AC liquidators’ licensed real Adam Goldberg mentioned Davies and Zhu had been extra attracted to making an try to fix their reputations than abet the corporate’s creditors.

Since their reappearance on Twitter, after quite a lot of months of radio silence, both Zhu and Davies had been tweeting about FTX’s give blueprint, and the blueprint the change and its shopping and selling company Alameda Research “hunted their positions,” which they claim one way or the other resulted in 3AC’s downfall.

In the meantime, its liquidators are soundless within the ineffective of evening as to their whereabouts and have claimed that the founders are but to originate a complete location of records of the hedge fund’s books.

In response to a doc prepared by 3AC liquidator Teneo and viewed by The Block on Dec. 16, the firm’s sources had been estimated to be $1 billion as of July, and consist of tokens, NFTs, project investments and fiat cash. Around $238 million of these sources had been held in tokens – the fee of which is doubtless to be deal lower than it became once in July given the scorching market volatility.

The doc moreover disclosed that 3AC’s sources had been fee great less than its liabilities which stood at $3 billion.

Given the shortage of “well-known cooperation” from 3AC’s founders, Teneo mentioned the firm has requested digital asset investigations specialists to peep into the firm’s on-chain activities within the months leading up to liquidation.