Su Zhu and Kyle Davies, the co-founder of the bankrupt crypto hedge fund Three Arrows Capital, reemerged recently in media interviews and on Twitter. And on the collapse of FTX, which was once the biggest crypto exchange in the world and now is nothing, and its founder Sam Bankman-Fried, the co-founders shared their opinions.
Moreover, both these co-founders and Three Arrows Capital’s Singapore-based legal team have not been cooperating with requests from the Singapore court for documents related to their firm’s liquidation. The High Court of the Republic of Singapore, which is dealing with 3AC, Three Arrows Capital’s case, has ordered the firm and its co-founders to submit affidavits summarizing their dealings with the company.
And the Singapore high court has also officially recognized the liquidation order filed in the British Virgin Islands, which means that the court-appointed liquidator, Teneo, can request Singapore financial records for the bankrupt company and its co-founders. Because of this order, the information in those affidavits could be critical for liquidators. However, the liquidators have been working to locate funds and thinking out how to settle claims with creditors.
In early May, when Terraform Lab’s algorithmic stablecoin, TerraUSD, collapsed, Three Arrows took a $200 million blow. And when crypto lending firm Voyager Digital revealed Three Arrows owed it $661 million and issued a formal notice of default, the final blow came for the bankrupt hedge fund. Two days after this formal notice, the British Virgin Islands court ordered the 3AC to liquidate.
This new order from the Singapore court was submitted on the 30th of November, a week after an attempt to obtain documents went unanswered by Solitaire, a Singapore-based law firm that represents 3AC. In the letter to Solitaire, demanding that they produce documents by the 23rd of November, law firm WongPartnership wrote that This is a curious position given your previous correspondence wherein your client volunteered to provide information to our customers on a rolling basis.
Russel Crumpler and Christopher Farmer, the foreign representatives of 3AC in its bankruptcy proceedings, submitted the order to the Southern District of New York bankruptcy court docket on the 1st of December.
On the 16th of November, Kyle Davies, the co-founder of 3AC, appeared on CNBC, saying that he is in Bali and has been cooperating with the liquidators. Kyle alleged that FTX and Alameda Research colluded to trade against clients, and It’s not an unfamiliar allegation. Su Zhu, another co-founder of 3AC, told Bloomberg that some industry leaders have said the FTX collapse set the industry back by five years, but I think it’s even longer than that, maybe seven or eight years.