After laying low for about a month, co-founder of the defunct crypto hedge fund Three Arrows Capital (3AC), Zhu Su, has reappeared on Twitter.
Liquidators Baited 3AC: Zhu
Zhu Su returned to the public eye through a tweet in which he called out liquidators and accused them of baiting the company. After nearly a month of inactivity, the 3AC co-founder tweeted that the liquidators had baited the firm to use information in court with respect to StarkWare tokens.
In his tweet, Zhu attaches a mail from a legal counsel that claims that StarkWare equity had a token warrant that the liquidator failed to exercise.
He tweeted,
“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.”
Zhu claims that it resulted in the loss of the StarkWare tokens, which expired on July 5. As a result, the company had to file for Chapter 15 bankruptcy after it failed to meet several margin calls from lenders.
StarkWare Warrant Not Exercised
Zhu had attached screenshots of what appears to be email communications between the fund’s legal counsel at Advocatus Law LLP – Christopher Anand Daniel and an individual addressed as “Russell,” assumed to be the executive who liquidated 3AC. An excerpt from one of the emails reads,
“Consistent with our clients’ desire to work reasonably with you, a spreadsheet with details of the Company’s assets that our clients have been able to put together in this short period is attached. In the interest of time, our clients are providing these on a rolling basis, and will continue to work on retrieving the details of other assets. We trust that you will inform the Court in the United States of America of this e-mail.”
Community Still Angry At Founders
The bear market had already destabilized 3AC in May. however, conditions were exacerbated by the crash of the Terra LUNA ecosystem. Since 3AC had extreme exposure to the defunct LUNA tokens, it lost around $550 million worth of funds in the crash. The hedge fund’s insolvency also affected several other lenders across the board. E.g., Voyager Digital has also been deeply affected by the 3AC bankruptcy announcement as the defaulted on a $500 million loan. The hedge fund also defaulted on a $1 billion loan from BlockFi.
Following 3AC’s bankruptcy announcement, both founders Zhu Su and Kyle Davies went off the radar. The company’s offices also were found to be abandoned and a court document recorded a lack of cooperation from the management towards the liquidators. Therefore, Zhu’s recent tweet claiming baiting on the part of the liquidators and his month-long disappearance has not won him any points from the community, which is accusing him of playing the ‘victim card.’
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
