Summary:
- Three Arrows Capital bosses are on their way to Dubai as 3AC liquidation proceeds.
- Su Zhu told Bloomberg that he and Davies have received death threats and prefer to keep a low profile for now.
- The founder also tagged recent events surrounding the crypto hedge fund as regrettable and said their bets did not pay off as planned.
- A liquidation committee led by Teneo Restructuring was recently formed to spearhead efforts.
- The development followed a court order from a British Virgin Island Court.
Three Arrows Capital co-founders are reportedly headed for Dubai, the United Arab Emirates, amid the liquidation of the bankrupt crypto hedge fund and supposed death threats.
Su Zhu and Kyle Davies revealed the update in an interview with Bloomberg published on Friday. The pair also described the recent events surrounding 3AC as regrettable, arguing that the company took bets based on a market they hoped would come, but never did.
Zhu also responded to allegations of embezzlement, categorically denying that he took out any funds. The co-founder claimed that both he and Davies invested personal funds in a bid to bolster the firm.
People may call us stupid. They may call us stupid or delusional. And, I’ll accept that. maybe but they’re gonna, you know, say that I absconded funds during the last period, where I actually put more of my personal money back in. That’s not true.
“The whole situation is regrettable” – Three Arrows Capital Boss
In 2012, Zhu and Davies co-founded Three Arrows Capital. At the height of its powers, the crypto hedge fund was a common name in the digital asset space and boasted billions of dollars under its management.
Source: Bloomberg
3AC’s fortunes turned sour after Terra’s tokens cratered and triggered mass panic through the cryptocurrency market. Due to exposure to Terra’s ecosystem and other factors including loans, and leveraged bets, the hedge fund found itself in uncertain waters. Zhu also mentioned Gray Scale (GBTC) and Bitcoin’s slump below $20,000 as contributing factors to the fund’s downfall.
Since the Terra debacle, 3AC has filed for chapter 11 bankruptcy and is currently facing liquidation after an order from a court in the British Virgin Islands. Zhu and Davies’s firm also owes a considerable amount to Voyager Digital, among other outstanding matters.
The BVI court order placed financial advisory outfit Teneo Restructuring in charge of 3AC’s liquidation. Teneo held the first creditors meeting this week and a committee was set up to oversee the process with over $2.8 billion in claims, per reports.
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