in distress cryptocurrency Zhu Su, co-founder of hedge fund Three Arrows Capital (3AC), spoke on Twitter Tuesday morning after nearly a month of silence over the future of funds associated with his company.
Three Arrows Capital CEO Zhu Su Accuses US Liquidators
While speculation continued about the whereabouts of him and his co-founder Kyle Davies, Zhu tweeted:
“Unfortunately, our good will to cooperate with the liquidators resulted in entrapment.”
US bankruptcy court documents showed on Friday that the two “did not cooperate” in the liquidation process of 3AC. Teneo, a consulting firm, was working to protect the hedge fund’s assets after the big crash.
3AC fell victim to the market-wide cryptocurrency crash last month. The company filed for bankruptcy in the British Virgin Islands after its financial statements took a hit, followed by Chapter 15 bankruptcy filing in the US.
Zhu today tweeted screenshots of emails that appear to have come from Advocatus Law LLP, attorneys for Three Arrows Capital. The first e-mail alleges that the creditors did not participate in the liquidation process in “good faith”.
CEO Shares Screenshot of Company Lawyers Talking to Officials
Christopher Anand Daniel, managing partner of Advocatus, said in screenshots on the subject:
“It has come to the attention of our customers that you allege that our customers in the United States are not cooperating with you in a meaningful way, and that you submitted an application detailing some of the conversations we had on July 8, 2022, and the way we did it.
It is now understandable why your lawyers in Singapore would like to ask if the negotiations are conducted in an ‘unbiased’ manner. Your aim was to use these interviews in court cases without informing our clients.”
The second screenshot looks at the company’s relationship with Israeli crypto startup StarkWare and whether 3AC’s liquidators exercised their right to purchase StarkWare tokens.
3AC has recently invested in StarkWare, which has reached a valuation of $8 billion and provides technology for permissionless, decentralized ZK-rollups for Ethereum scalability and the deployment of smart contracts.
Regarding this issue, Daniel said:
“As you know, our customers are not only former executives of the company, but also investors and shareholders of the company. One of our customers, Mr. Zhu Su, is also a creditor.
In this context, they are extremely concerned that the liquidators have not implemented StarkWare’s token purchase offer (“StarkWare Exercise”), which was confirmed by you in the interview dated July 8, 2022.”
*Not investment advice.