Three Arrows Capital Is Rumored to Not Cooperate With the Liquidators
If you know or join the crypto space, you must have heard about the LUNA-UST collapse, which led to a liquidity crisis with the investment fund Three Arrows Capital (3AC) being one of the hardest hit.
The latest news of the case is the disappearance of 3AC founders (Su Zhu and Kyle Davies), not cooperating with the liquidators. According to court documents, Three Arrows Capital’s lawyers, although still in contact, do not know the location of their clients. They also wrote directly that it was “rumored” the duo had fled Singapore.
Teneo Restructuring, which was appointed by the British Virgin Islands court to liquidate 3AC’s assets, expressed concern that the two founders would disperse the fund’s assets, especially when Three Arrows Capital’s assets include cash, cryptocurrencies, and NFTs – which are highly liquid.
These one-sided accusations received great attention from the community, especially when Su Zhu and Kyle Davies did not speak up, or make any announcements on Twitter for nearly 4 weeks.
However, on the afternoon of July 12, Su Zhu has broken his silence on Twitter, voicing a counterattack against the accusations.
Su Zhu Has Finally Spoken Out
In a Tuesday tweet, Zhu said that 3AC had been baited by unnamed liquidators. Zhu shared screenshots of two emails from 3AC’s legal team, Advocatus Law LLP, claiming that the liquidators had tricked the firm into discussions “without prejudice” to gather evidence for court filings.
The note added that 3AC had a “desire to work reasonably” with the liquidators to repay its obligations. It also said that 3AC’s families had received threats over the firm’s recent collapse and been contacted by Singapore’s central bank and would seek “appropriate sanctions” over the alleged baiting.
Unpacking StarkWare Token
It’s also worth mentioning in the two emails that Zhu accused the liquidators of failing to exercise a StarkWare token offer by July 5, hitting the company with losses.
For those who don’t know, StarkWare is the most anticipated Layer-2 solution in 2022, which has tripled in value after just… 3 months. Most recently, StarkWare has successfully called for $100 million, raising its valuation to $8 billion.
However, unlike many other competitors in the space, the project has yet to launch its own token.
The email exchange shared by Zhu has accidentally indicated that a token could be on the horizon, and will be used to raise capital from VCs and institutional investors. On the official website, 3AC also said that it has a stake in StarkWare.
As for the crypto community, after the recent controversies, they seem to not be enthusiastic about Su Zhu’s responses. Instead, they urged the 3AC founder to tweet more “meaningful” information.
Follow our channels for more crypto news:
- Cryptory Insights: https://t.me/CryptoryInsights
- Cryptory Global Community: https://t.me/CryptoryCommunity
- Facebook: https://www.facebook.com/CryptoryNetwork
- Twitter: https://twitter.com/CryptoryNetwork