The founder of now-defunct crypto hedge fund Three Arrows Capital (3AC) is reportedly worried about facing jail time after a disagreement with court-appointed liquidators. According to a new report by Bloomberg, 3AC CEO Su Zhu delivered an affidavit accusing Teneo, the liquidation company in charge of 3AC’s assets, of misleading Singapore’s High Court about the […]
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The founders of a troubled crypto hedge fund have reportedly reappeared after leaving their creditors high and dry with a multi-billion dollar bill for over a month. According to a new report by Bloomberg, Three Arrows Capital (3AC) co-founders Kyle Davies and Su Zhu have resurfaced after five weeks of hiding as their creditors seek […]
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This week the two co-founders of the embattled cryptocurrency hedge fund Three Arrows Capital spoke to Bloomberg about their fund crumbling at the seams. The co-founders Su Zhu and Kyle Davies did not disclose their whereabouts, but a lawyer who monitored the interview noted the duo is located in the United Arab Emirates. Zhu said […]
The amount is likely understated as many of 3AC's borrowing details remain confidential.
According to Twitter user @DrSoldmanGachs, a self-proclaimed creditor of troubled Singaporean crypto hedge fund Three Arrows Capital (3AC), the now-defunct entity allegedly owes $2.8 billion in claims, as discovered through a recent 3AC creditors meeting. In addition, the claim amount could be understated, as many have either not made their claim or have not disclosed their claim amounts for reasons of confidentiality.
As told by DrSoldmanGachs, the meeting voted to elect a creditor committee comprising Digital Currency Group, Voyager Digital, Blockchain Access Matrix Port Technologies and CoinList Lend. These five parties above represent approximately 80% of the current level of claims.
3AC assets are believed to be comprised of bank account balances, direct crypto holdings, underlying equity in projects and nonfungible tokens. At the time of publication, it is unclear how much in the fund's equity remains. Last year, the hedge fund reportedly held $6 billion in assets and $3 billion in liabilities.
Via a series of highly-leveraged bullish directional bets with borrowed money from major crypto institutions, 3AC became insolvent amid the ongoing cryptocurrency bear market. Its founders allegedly fled and defaulted on loan payments that were left behind, leading to a major contagion among centralized finance firms tha lent money to 3AC.
Both of 3AC's co-founders, Su Zhu and Kyle Davies, could not be located after the fund's blowup. Ironically, Su Zhu is allegedly claiming $5 million from 3AC, while Chen Kaili Kelly, wife of Kyle Davies, is allegedly claiming $66 million. However, such claims are reportedly quasi-equity and subordinate to the distribution of leftover assets, if any, to creditors.
To get you up to speed:
— Jack Niewold (@JackNiewold) July 18, 2022
After making a series of large directional trades (GBTC, LUNA, stETH) and borrowing from 20+ large institutions, Three Arrows Capital (3ac) went bust.
Then the founders ran, and the loan defaults have lead to mass contagion in crypto.
The whereabouts of Three Arrows Capital (3AC) founders Zhu Su and Kyle Davies are currently unknown, according to creditors trying to seek payment on large unpaid loans. According to court documents, lawyers representing the creditors say two hedge fund bosses have yet to cooperate in any significant way. “The physical whereabouts of the Debtor’s founders, […]
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According to a report published on July 8, the cryptocurrency firm Blockchain.com lost $270 million from exposure to the crypto hedge fund Three Arrows Capital (3AC). The news was shared in a recent letter to shareholders written by the company’s CEO Peter Smith. The Blockchain.com executive stressed that the firm “remains liquid, solvent and our […]
The troubled crypto hedge fund Three Arrows Capital Ltd., otherwise known as 3AC, has filed for bankruptcy according to recent court filings. The court papers show 3AC is aiming for an ancillary Chapter 15 proceeding so liquidators and creditors cannot seize the firm’s U.S. assets. 3AC Files for Bankruptcy — ‘Tremors’ From the Crypto Market […]
On Wednesday, it was reported that the crypto hedge fund Three Arrows Capital (3AC) was liquidated by a British Virgin Islands court and following the alleged liquidation, the Monetary Authority of Singapore (MAS) has reprimanded 3AC for misleading regulators. Furthermore, reports claim that liquidators in Singapore are attempting to seize the properties owned by 3AC […]
Crypto hedge fund Three Arrows Capital is reportedly facing liquidation after a recent court order. According to a new report from Reuters, a court in the British Virgin Islands has ordered the liquidation of the Singapore-based firm on Monday. Reuters says that Teneo, a global consultancy and advisory firm, has been appointed as liquidators. The […]
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According to a recent report from Sky News citing a source familiar with the matter, “cryptocurrency insiders” have said that the troubled crypto hedge fund Three Arrows Capital (3AC) has been formally liquidated by a British Virgin Islands (BVI) court. The report does not disclose what type of assets face liquidation, but the sources remarked […]