Well, if they haven't lost ALL the money, then maybe they got enough to hire lawyers to avoid jail-time.
It is a variation on the way Russian companies cheat Western investors out of their investment shares.
Founders who ‘cannot be trusted’ and a $50 million yacht: New Three Arrows Capital bankruptcy filing sheds light on the crypto hedge fund’s epic demise https://fortune.com/2022/07/19/3ac-bankruptcy-filing-founders-missing-yacht-debt-creditors-owed/ Kyle Davies and Zhu Su, the founders of Three Arrows Capital (3AC) are nowhere to be found, but the size of their firm's gargantuan debt obligations have come into clearer view. The crypto hedge fund owes $3.5 billion to 27 different companies, including $2.3 billion to digital currency lender Genesis Global Trading, according to a court filing in the firm's bankruptcy made public on Monday. "3AC is insolvent and should be wound up," creditors argued in a 1,157-page affidavit filed in a British Virgin Islands court. "Its management cannot be trusted to retain any remaining assets for the benefit of creditors." The Singapore-based firm was once one of crypto's largest and most prominent funds managing over $10 billion. But a poorly-timed investment in Luna coin prompted investors to demand their funds back, ultimately forcing 3AC to file for Chapter 15 protection and sending its founders on the run from a swarming group of creditors and regulators. The court appointed liquidator Teneo uploaded the bankruptcy filing to a website it created called 3acliquidation.com on Monday. Teneo has since taken down the post, but the filing zipped around the internet and is now uploaded elsewhere. Collectively, the hundreds of pages plot out the timeline of 3AC's demise, according to the firm's creditors. (Much more at above url)