Liquidators of Three Arrows Capital Demand an Astounding $1.3B from Troubled Hedge Fund Founders

By Lola Coin Jun 27, 202378Views

Liquidators representing Three Arrows Capital are seeking $1.3 billion from the co-founders, Su Zhu and Kyle Davies, alleging that they caused losses equivalent to this amount. The liquidators, partners at Teneo, claim that Zhu and Davies excessively leveraged the fund before its collapse. The fund had already experienced losses from investments in Luna tokens and other ventures. The liquidators argue that the firm was on the brink of insolvency when Zhu and Davies engaged in substantial leverage. Legal proceedings have been initiated in the British Virgin Islands, and the liquidators have appealed to a New York bankruptcy judge to impose a daily fine on Davies for lack of cooperation. Following the collapse of Three Arrows Capital, Zhu and Davies started a new venture named OPNX with Mark Lamb, the founder of CoinFLEX.

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