Massive Liquidation Battle Exposes $1.3B Bankruptcy of Crypto Hedge Fund Three Arrows Capital

By Lola Coin Jun 27, 202363Views

, , ,

Liquidators are seeking to recover over $1 billion from the co-founders of bankrupt crypto hedge fund Three Arrows Capital (3AC). Su Zhu and Kyle Davies allegedly incurred $1.3 billion in losses before the collapse of the hedge fund. The liquidators accuse the co-founders of forcing the firm to take on significant leverage when it was already insolvent and suffering from losses after the collapse of the Terra ecosystem. Bloomberg’s requests for comment from the co-founders’ lawyers have gone unanswered. In July 2022, there were reports of challenges in the 3AC bankruptcy proceedings, with liquidators accusing the co-founders of lack of cooperation. Three Arrows creditors are owed a total of $3.3 billion, including the $1.3 billion. Liquidators have requested that a New York bankruptcy judge fine Davies $10,000 per day for allegedly not responding to a subpoena for business records.

Continue reading on Dailyhodl.com

Read Disclaimer

This content is aimed at sharing knowledge, it's not a direct proposal to transact, nor a prompt to engage in offers. Lolacoin.org doesn't provide expert advice regarding finance, tax, or legal matters. Caveat emptor applies when you utilize any products, services, or materials described in this post. In every interpretation of the law, either directly or by virtue of any negligence, neither our team nor the poster bears responsibility for any detriment or loss resulting. Dive into the details on Critical Disclaimers and Risk Disclosures.