By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Sign In
Web3,Blockchain & Metaverse Education Media PlatformWeb3,Blockchain & Metaverse Education Media Platform
  • Home
  • News
    • Cryptopedia
      • Blockchain News
      • Bitcoin News
      • Ethereum News
      • Altcoin News
    • Latest Metaverse & NFT News
      • Metaverse & NFT Games
      • Virtual Land
    • Exchanges News
    • Policy & Regulation
    • Web Stories
  • Press Release
    • Sponsored Article
    • Submit Press Release
  • Interviews
    • Opinion
  • Expert Alliance
    • About Expert Alliance
    • Expert Alliance Benefits
    • Experts List
    • Apply for Expert Alliance
  • Guide
    • NFT Review
    • Game Review
    • Submit NFT Project
  • Videos
  • Events
Search
  • Advertise with us
  • Media Kit
  • 365 Media Plan
  • Submit Press Release
  • Submit NFT Project
© 2022 NFTStudio24.com News Network. All Rights Reserved.
Reading: Creditors report 3AC founders “missing”, Zhu Su gives legal update on Twitter
Share
Web3,Blockchain & Metaverse Education Media PlatformWeb3,Blockchain & Metaverse Education Media Platform
Search
  • Home
  • News
    • Cryptopedia
    • Latest Metaverse & NFT News
    • Exchanges News
    • Policy & Regulation
    • Web Stories
  • Press Release
    • Sponsored Article
    • Submit Press Release
  • Interviews
    • Opinion
  • Expert Alliance
    • About Expert Alliance
    • Expert Alliance Benefits
    • Experts List
    • Apply for Expert Alliance
  • Guide
    • NFT Review
    • Game Review
    • Submit NFT Project
  • Videos
  • Events
Have an existing account? Sign In
Follow US
  • About us
  • Advertise with us
  • Media Kit
  • 365 Media Plan
  • Submit NFT Project
  • Careers
  • Contact us
  • Privacy Policy
© 2022 Foxiz News Network. Ruby Design Company. All Rights Reserved.
  • Global
  • Japan
  • South Asia
  • Partners
  • Community
HOME > News > Creditors report 3AC founders “missing”, Zhu Su gives legal update on Twitter
News

Creditors report 3AC founders “missing”, Zhu Su gives legal update on Twitter

news room
Posted news room July 14, 2022 516 Views 7 Min Read
Updated 2023/01/25 at 8:01 PM
3AC founders missing
3AC founders missing
SHARE

World-leading, now bankrupt, crypto hedge fund, Three Arrows Capital lined up with insolvency cases, creditors, and crypto firms liquidating amidst the crypto market crash. According to CNBC, the founders of 3AC, Zhu Su and Kyle Davies were reported physically missing by the creditors. 

Contents
3AC drowns in the bankruptcy caseHave 3AC Founders gone missing?Zhu Su breaks silence on TwitterFinal words
3AC

Three Arrows Capital was once a well-known crypto hedge fund that invested millions of dollars in almost every crypto startup in hopes to develop the Web3 space and become a conglomerate corporation. However, a crypto crash was all it took to break apart and completely dissolve a perfectly working hedge fund with $1B assets within two months.

3AC had a lot of hope attached to Terra’s ecosystem. When LUNA collapsed, the company reported a $200M loss, which eventually led to insolvency and liquidation rumors in the crypto community. 

Despite the co-founder, Zhu Su’s claim that they were recovering from the losses, 3AC fell and many crypto firms like FTX, Deribit, and BitMEX liquidated from the hedge fund, claiming they haven’t received promised investment amounts. Finally, on July 1, the news broke that 3AC had filed for Chapter 15 Bankruptcy protection from U.S. creditors in the Southern District of New York.

At the same time, Voyager, a crypto lending firm, filed for bankruptcy protection since 3AC failed to return the borrowed $620M funds. Similarly, many crypto firms have filed for liquidation making it a more serious case than it ever was.

3AC drowns in the bankruptcy case

3AC drowns in the bankruptcy case

3AC seems to be having a hard time keeping up with its creditors. The crypto hedge fund filed for bankruptcy protection. However, no progress has been made as of now regarding the case.

Three Arrows Capital has been borrowing funds from various companies and turning them into capital for investment in crypto startups. This strategy worked wonders as many firms thrived with the investment money for the development of the Web3 space. 

When the Terra crash happened, the crypto hedge fund couldn’t contain its reserves as it had invested a lot of money in its ecosystem. Months later, another crash happened, and 3AC was unable to hold up causing a collective breakdown in the DeFi and Web3 industry. 

This angered the creditors a great deal. According to the court’s report, the founders of 3AC hadn’t even begun negotiations with the creditors “in any meaningful manner.” The founders seem to be running around circles to drag the issue amidst the bankruptcy filing. 

Have 3AC Founders gone missing?

According to CNBC, the creditors reported that the founders are physically missing from their offices causing a suspicion that Zhu Su and Kyle Davies might have abandoned the company.

3AC is supposed to hear the case on Tuesday to start the liquidation process but the founders have yet to show their faces in public. However, the founders’ representative lawyer claimed that they have been receiving death threats from the creditors so they relocated to an unknown place.  

Friday’s court filing explained that the founders held a Zoom Call to discuss how they will proceed to preserve their assets and deal with the case. Both founders refused to talk and had their videos off during the whole session with only lawyers talking. This caused suspicion and none of the founders might’ve attended at all. 

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

Zhu Su breaks silence on Twitter

After a month-long update, Zhu Su came on Twitter with a post screenshot of the interaction between Russell Crumpler from Teneo and 3AC Founders’ representative Christopher Anand Daniel. 

Teneo is a global advisory firm hired to help 3AC manage its remaining assets and recover from the liquidation. According to Russell, the Zoom meeting was highly suspicious and the company also refused to give them access to files and data stored in their main office in Singapore. 

The court filing on Friday reported that they haven’t received the permission. Russell reported that the creditors who went to 3AC’s Singapore office found the place to be empty with only a few computer screens working. Following the court filings, Russell concluded that there is a huge risk that the founders might run away. 

“That risk is heightened because a substantial portion of the Debtor’s assets are cash and digital assets, such as cryptocurrencies and non-fungible tokens, that are readily transferrable,” He said. 

This suspicion comes when a crypto wallet owned by 3AC were transferred to another wallet and the founders might be looking for ways to preserve their remaining reserves without falling under the radar of the creditors. 

However, Zhu Su came on Twitter claiming, “Sadly, our good faith to cooperate with the Liquidators was met with baiting…”

The representative lawyer, Daniel, of the 3AC founders said that Zhu Su and Kyle Davies are facing pressure from the Monetary Authority of Singapore and this explains why they haven’t physically appeared in public and in front of the creditors. 

The lawyer also explained that his clients will not cooperate with Teneo’s agents for the time being. He said, “Depending on your response, we will let you know when our clients can reasonably be expected to speak with you.”

Final words

the 3AC bankruptcy case doesn’t seem to be doing so well. The founders refuse to show themselves, which makes it even more suspicious. Although the reasons given by their lawyer seem arguable, the creditors are still pushing the authorities to take action against the crypto hedge fund before they go anonymous like many others.

However, due to the lack of proper regulations and defined laws, this case is most likely to get more complicated than ever. As 3AC readies itself for the bankruptcy hearing, many ask the question, “how will 3AC founders satisfy their creditors?” “Will they ever show themselves in public?” and “how will 3AC recover from its liquidation amidst the loss of assets?” 

The court is yet to give any decisive statement on the case.

Sign Up For Daily NFT Drops

Don't miss the next NFT drops!!!
I have read and agree to the terms & conditions
By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
Share
What do you think?
Love0
Sad0
Happy0
Sleepy0
Angry0
Dead0
Wink0
Previous Article InfiniteWorld launches NFT Grade InfiniteWorld launches NFT Grade Analysis Tool to evaluate NFTs
Next Article Disney builduing metaverse Disney is building a metaverse, announces partners for Disney Accelerator 2022
Leave a comment

Leave a Reply

You must be logged in to post a comment.

Don’t miss the NFT Drops! Sign up Now

I have read and agree to the terms & conditions

Latest News

DeFi protocol DefiLlama has resolved its internal conflicts 1
DeFi protocol DefiLlama has resolved its internal conflicts
CRYPTOPEDIA News WEB3 March 21, 2023
Crypto Fear and Greed Index has reached its highest level
Crypto Fear and Greed Index has reached its highest level
BITCOIN NEWS News March 21, 2023
Project AI Powered Trading Platform Accused of Draining 1M from Users
Project ‘AI-Powered’ Trading Platform Accused of Draining $1M from Users
AI BLOCKCHAIN NEWS News March 20, 2023
Join us
Ad imageAd image

You Might also Like

DeFi protocol DefiLlama has resolved its internal conflicts 1
CRYPTOPEDIANewsWEB3

DeFi protocol DefiLlama has resolved its internal conflicts

March 21, 2023
Crypto Fear and Greed Index has reached its highest level
BITCOIN NEWSNews

Crypto Fear and Greed Index has reached its highest level

March 21, 2023
Project AI Powered Trading Platform Accused of Draining 1M from Users
AIBLOCKCHAIN NEWSNews

Project ‘AI-Powered’ Trading Platform Accused of Draining $1M from Users

March 20, 2023
New York allows Binance Voyager deal to proceed without holdings
EXCHANGESNews

New York Judge allows Binance-Voyager deal to proceed without holdings

March 17, 2023
//

NFTStudio24 delivers the latest NFT news to its global audience. We are committed to reporting mainstream and emerging talent via exclusive press releases, podcast interviews, NFT rankings, and much more.

GET IN TOUCH

  • About us
  • Advertise with us
  • Media Kit
  • 365 Media Plan
  • Submit NFT Project
  • Careers
  • Contact us
  • Privacy Policy

Experts Alliance

  • Experts Alliance
  • About Alliance
  • Alliance Benefits
  • Membership requirements
  • Apply Alliance
//

Subscribe to our newsletter to get our newest articles instantly!

I have read and agree to the terms & conditions
Web3,Blockchain & Metaverse Education Media PlatformWeb3,Blockchain & Metaverse Education Media Platform
Follow US

© 2022 NFTStudio24.com News Network. All Rights Reserved.

Removed from reading list

Undo
Join us metaverse Join us metaverse
Welcome Back!

Sign in to your account

Register Lost your password?