- Liquidators’ attorney A Goldberg alleged that founders Kyle Davies and Su Zhu are more interested in re-establishing their reputation.
- Goldberg stated that investigators found that the founders used 3AC’s money to buy a superyacht.
- 3AC revealed in a court filing that the founders are currently in the UAE and Indonesia.
On Friday, liquidators for crypto hedge fund Three Arrows Capital(3AC) alleged that the bankrupt firms’ founders are not helping with asset recovery. Liquidators have said due to these refusals the company is unable to return funds to creditors.
In a bankruptcy hearing, liquidators’ attorney Adam Goldberg claimed that the founders of 3AC- Kyle Davies and Su Zhu are rather more interested in re-establishing their reputation instead of cooperating with asset recovery efforts for their own company’s creditors.
Goldberg stated:
It’s interesting to say the least, that the first time we’ve heard this theory that FTX caused the downfall of this debtor was after FTX’s own sensational collapse.
Goldberg was hinting at Davies’ recent interview where he blamed FTX and its affiliated trading platform Alameda Research for “hunted our positions,” which led to both Luna’s crash, and 3AC collapse too. Davies also revealed in the interview that he was helping the fund’s liquidators.
Goldberg also revealed in the hearing that someone had raided hard drives from locked 3AC offices before the liquidators got the access. Investigators disclosed that the founders used 3AC’s money to buy a superyacht ‘Much Wow’.
Moreover, Goldberg said that the liquidators are trying to get the $30 million spent on the yacht back, and will also take recovery actions in future.
Nevertheless, Liquidator Russell Crumpler said in court that in spite of the incomplete access to records and accounts, 3AC liquidators have regained some of the creditors’ assets, accounting to $35 million in USD and in different crypto tokens and recovery efforts are still going on.
Crumpler further added that 3AC has recovered control over accounts that had over 60 different types of cryptocurrency tokens. 3AC revealed in a court filing that the founders are currently in the UAE and Indonesia.
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