3AC co-founder on the way to Dubai, want ordered liquidation: report

3AC co-founder on the way to Dubai, want ordered liquidation: report

SU ZHU and Kyle Davies finally openly appeal to the collapse of their hedge fund Three Arrows Capital (3AC) after insolvency administrators have not accused them of not cooperating for demands from creditors.

The 35-year-old, who founded the company at the kitchen table in 2012, spoke to Bloomberg in a detailed interview to meet the inability of the fund, which they now regret.

Both emphasized that they had suffered deep losses and refused to remove money from the fund before they collapsed. ZHU claimed that at the time of collapse he put more money into the fund.

Insolvency administrators of the creditor of 3AC said in a file dated July 8 that both co-founders did not cooperate sensibly and would not speak if they were asked if they had any questions. Court files show that instead their lawyers of Advocatus and Solitaire spoke.

But Zhu told Bloomberg that the details of the call with Davies and two lawyers from Solitaire did not mean that they did not cooperate with "all relevant authorities". A lawyer said both co -founders were on the way to the United Arab Emirates, but did not reveal where they spoke from.

The bankruptcy of 3AC triggered a meltdown among the crypto loan, which partially accompanied the downturn on the crypto markets and a liquidity crisis for several companies, including Voyager and Celsius. The fund had a long list of opponents whose money depended on his ability to stay afloat.

But the strategy to borrow money from the entire industry and make investments in aspiring projects suffered from the collapse of Stablecoin Terrausd, which brought investors down that had focused on the company.

"The whole situation is unfortunate," Davies told Bloomberg. "Many people have lost a lot of money."

3AC now owes around 27 crypto companies 3.5 billion US dollars, with the crypto broker company Genesis with a claim of $ 2.3 billion is the largest creditor. So far, the insolvency administrators have been reported to confiscate assets worth $ .

ZHU said that they positioned themselves for a “type of market that did not come about in the end”, and the infection that spread to other companies was not shocking, since all similar yield -generating strategies have.

defend speculation about wasteful lifestyles

A affidavit that was recently submitted by 3ACS insolvency administrator Russell Crumpler says that ZHU and Davies have made a deposit for a $ 50 million yacht, which means that they used the assets of the fund for extravagant personal expenses.

ZHU said that the yacht, which has a "full money trace", was bought more than a year ago and was to be used in Europe. He claimed that he had no lavish lifestyle, that he ran by bike to and from work every day and that his family only owns two houses in Singapore.

He continued to defend their lifestyle by saying that they had not been seen in clubs or had driven Ferraris and Lamborghinis, and that speculation about their lives were only an attempt at defamation.

'nail in the coffin

The problems of 3AC came shortly after the sudden collapse of Terrausd and his sister token Luna, who destroyed the savings of thousands of investors. The fund that invests, for example, In this way, serious losses.