Arrow Capitals (3AC) Crypto Assets frozen by Judge!
6/4/2022, 11:18 PM
A never ending tragedy:
• The hedge fund, Three Arrows Capital, managed $10 billion in assets at its peak.
• It was founded in 2012 by two young men, Zhu Su and Kyle Davies.
• But now its two co-founders are in hiding from creditors, who are trying to recoup their losses.
• Prior to the bankruptcy filing, a court in the British Virgin Islands ordered the fund to liquidate in order to pay back its debts.
• A judge granted an emergency motion Tuesday to freeze the fund’s remaining U.S. assets.
• Zhu hasn’t been seen in public since the court order.
• There are concerns that the fund’s leaders might be siphoning funds ahead of the formal liquidation.
• But Zhu broke his silence on Twitter early Tuesday, writing that the firm’s efforts to cooperate with creditors had been met with baiting.
• From his verified account, Zhu shared screengrabs of emails sent by his lawyer to counsel representing liquidators. In those messages, the attorney wrote that the families of the co-founders “have received threats of physical violence.” He also said Zhu and Davies have been “working under a lot of time pressure,” noting that they “had to field queries from the Monetary Authority of Singapore in the last week.”
The hedge fund Three Arrows Capital was one of the biggest players in the crypto market, but now it is broke. A billion flop, which draws wide circles in the industry.
The victims of the bankruptcy are therefore also those who entrusted their money to the hedge fund. According to media reports, these also include private investors who released their crypto holdings for loan via specialized platforms in order to achieve a supposedly secure return.
• The hedge fund, Three Arrows Capital, managed $10 billion in assets at its peak.
• It was founded in 2012 by two young men, Zhu Su and Kyle Davies.
• But now its two co-founders are in hiding from creditors, who are trying to recoup their losses.
• Prior to the bankruptcy filing, a court in the British Virgin Islands ordered the fund to liquidate in order to pay back its debts.
• A judge granted an emergency motion Tuesday to freeze the fund’s remaining U.S. assets.
• Zhu hasn’t been seen in public since the court order.
• There are concerns that the fund’s leaders might be siphoning funds ahead of the formal liquidation.
• But Zhu broke his silence on Twitter early Tuesday, writing that the firm’s efforts to cooperate with creditors had been met with baiting.
• From his verified account, Zhu shared screengrabs of emails sent by his lawyer to counsel representing liquidators. In those messages, the attorney wrote that the families of the co-founders “have received threats of physical violence.” He also said Zhu and Davies have been “working under a lot of time pressure,” noting that they “had to field queries from the Monetary Authority of Singapore in the last week.”
transfer, encumber or otherwise dispose of any assets of the Debtor located within the territorial jurisdiction of the United States.- US authority
The hedge fund Three Arrows Capital was one of the biggest players in the crypto market, but now it is broke. A billion flop, which draws wide circles in the industry.
The victims of the bankruptcy are therefore also those who entrusted their money to the hedge fund. According to media reports, these also include private investors who released their crypto holdings for loan via specialized platforms in order to achieve a supposedly secure return.