Liquidators of Three Arrows Capital Seek $1.3 Billion from Founders
The liquidators of the bankrupt cryptocurrency hedge fund Three Arrows Capital are seeking $1.3 billion from its founders, Zhu Su and Kyle Davies. The New York advisory firm Teneo, appointed as liquidators, alleges that this amount represents the losses incurred by the duo before the fund’s collapse. The liquidators have accused Zhu and Davies of evading cooperation, further complicating the liquidation process. To recover the claimed amount, Teneo has initiated legal proceedings against the founders in a court in the British Virgin Islands.
Main Points:
– The liquidators of Three Arrows Capital are seeking $1.3 billion from founders Zhu Su and Kyle Davies.
– The requested amount corresponds to the losses incurred by the duo before the fund’s collapse.
– The liquidators have accused Zhu and Davies of evading cooperation, making the liquidation process more challenging.
– Teneo has initiated legal proceedings against the founders in a court in the British Virgin Islands.
– This is the latest legal maneuver in the liquidators’ attempt to recover the $3.3 billion owed to investors by Three Arrows Capital.
Despite facing legal action and liquidation, Zhu and Davies have reentered the digital asset industry with a new venture called 3AC Ventures. Their activities have faced regulatory criticism for operating without legal authorization. The relaunched fund aims to achieve “superior risk-adjusted returns without leverage” and supports decentralized credit market Raise R and ICO platform OPNX. However, even key figures in the cryptocurrency world, such as Arthur Hayes, have expressed disapproval of their latest project.
Hot Take:
The liquidators of Three Arrows Capital are determined to recover the funds owed to investors, seeking $1.3 billion from the founders. Despite facing legal action and regulatory scrutiny, Zhu and Davies have made a comeback with 3AC Ventures. The cryptocurrency community remains skeptical of their new venture, showing the challenges they face in rebuilding their reputation.
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