Liquidators are reportedly trying to recover more than $1 billion from the co-founders of bankrupt crypto hedge fund Three Arrows Capital (3AC).
That reports a new Bloomberg report3AC co-founders Su Zhu and Kyle Davies posted about $1.3 billion in losses before the hedge fund collapsed, the amount the liquidators are now demanding from them.
The report is based on an anonymous source with knowledge of the liquidators’ claims, who say Zhu and Davies are accused of forcing the company to take on serious leverage when it was already insolvent and suffered large losses following the collapse of the Terra (LUNA). ) ecosystem.
Bloomberg’s requests for comment from the co-founders’ lawyers were not responded to at time of publication.
In July 2022, there were reports of the challenges of 3AC’s bankruptcy proceedings, including liquidators accusing the co-founders of a lack of cooperation.
At the time, Zhu was critical of liquidators in a tweet.
“Unfortunately, our good faith in cooperating with the liquidators was taken on bait.”
The liquidators are partners at the consultancy firm Teneo and were appointed by a court in the British Virgin Islands last year. Three Arrows creditors reportedly owe a total of $3.3 billion, including the $1.3 billion.
This month, liquidators petitioned a New York judge to fine Davies $10,000 a day for allegedly failing to respond to a subpoena for business documents, the report said.
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