The liquidators of Three Arrows Capital, a failed crypto hedge fund, are seeking to recover $1.3 billion from the fund’s co-founders, Su Zhu and Kyle Davies. According to anonymous sources cited in a Bloomberg report, the liquidators claim that Zhu and Davies were responsible for losses amounting to that sum. It is alleged that the co-founders accumulated significant leverage prior to the collapse of Three Arrows Capital. The allegations were reportedly discussed during a meeting with the fund’s creditors. Both Zhu and Davies have since returned to the industry, launching a new business called OPNX. The liquidators have criticized Zhu and Davies for their lack of cooperation. They are now taking legal action against the pair in a court in the British Virgin Islands to recover the alleged losses.
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