Ethereum

Su Zhu and Kyle Davies finally talked about 3AC’s breakdown

During an interview with Bloomberg, Su Zhu and Kyle Davies, founders of Three Arrows Capital (3AC), troubled hedge fund break the silence On the events they have experienced in the past few weeks.

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This was after the release of court papers claiming that the duo had not been found anywhere and that they were refusing to cooperate with the liquidation process. No response was received from the founders for about five weeks.

Shortly after the court’s claim, Su Zhu resurfaced with a tweet displaying an email his legal team had sent to liquidators. The email signed by Christopher Anand Daniel, managing partner at Advocatus Law LLP, criticized the liquidators suggesting that they catching duo founders. Liquidators were blaming Cho and Davis for the lack of cooperation, and according to Christopher, that wasn’t the case.

Based on Zhu’s response, their hedge fund had previously gone down due to clumsy market speculation that led to massive margin demand for loans.

He testified that those loans should not have been taken in the first place. Both Chu and Davis described the hedge fund’s fall as unfortunate according to a Bloomberg report. They rejected the claim that they pulled huge money from 3AC before the fall.

The collapse of 3AC leads to a move to Dubai

Meanwhile, many crypto companies tried to help 3AC and its peers who all faced liquidation and bankruptcy.

These companies ended up acting as creditors of insolvent companies, and Blockchain.com was one of 3AC’s largest creditors. Recently, Coinbase, the US-based cryptocurrency exchange, admitted that it was not financially exposed bankrupt crypto companies.

The loan claims of many investors on the hedge fund amount to about $2.8 billion. According to a legal document released Monday, 3AC still owes its creditors and investors up to $1 billion. The hedge fund, coming from Zhu, is planning to move its operations to the United Arab Emirates (Dubai). He added that a survey of Dubai had to be done before the business could finally move there.

“Since we have planned to move the company to Dubai, we have to go there soon to assess whether we will move there as originally planned or if the future holds something different for us,”

Image source: shutterstock

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