Zhu Su, the co-founder of crypto hedge fund Three Arrows Capital (3AC), has finally broken his silence on the company’s liquidation proceedings. Su said in his first Twitter post since last month that the firm’s good faith to cooperate with liquidators was met with “baiting.”
The tweet also included screenshots of an email Su sent from his legal counsel to 3AC liquidators, noting that they are seeking appropriate sanctions for liquidators baiting their clients.
In a Friday court filing, 3AC’s liquidators Russell Crumpler and Christopher Farmer said they could not locate the founders of the crypto hedge fund and asked the court to force them to cooperate with the liquidation proceedings. Hence, the court scheduled an emergency hearing for Tuesday to address the concerns of the liquidators.
Sadly, our good faith to cooperate with the Liquidators was met with baiting. Hope that they did exercise good faith wrt the StarkWare token warrants. pic.twitter.com/CF73xI8r6n
— Zhu Su ???? (@zhusu) July 12, 2022
The shared screenshots show that 3AC founders have been working under pressure after receiving threats of physical violence and lots of queries from the Monetary Authority of Singapore (MAS).
Furthermore, the images revealed that the founders were not provided any copy of the documents presented by the liquidators last Friday. Hence, the legal counsel noted that the 3AC co-founders will not attend Tuesday’s court hearing in New York.
Recall that 3AC liquidation was ordered by a law court in the British Virgin Islands last month after the crypto hedge fund failed to meet margin calls from its lenders due to the recent crypto bear market.
The company’s failure to stay afloat amid the bear market has had a negative impact on its lenders. Recently, crypto brokerage firm Voyager Digital filed for Chapter 11 bankruptcy protection after 3AC failed to pay over $650 million it had borrowed from the firm. Crypto exchanges Genesis and BlockFi have already liquidated 3AC’s position after failing to meet margin calls.
Meanwhile, the hedge fund is also facing trouble from regulators in Singapore. Last month, the Monetary Authority of Singapore reprimanded 3AC for providing false information and exceeding the threshold for assets under management (AUM) allowed for fund managers.
