Three Arrow Capital Founders Finally Speak Up, Mull Over Move to Dubai
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Su Zhu and Kyle Davies, the Founders of the
bankrupted cryptocurrency hedge fund, Three Arrows Capital (3AC), have finally
spoken on the fund’s collapse.
They broke their over-one-month-old silence in an
interview with Bloomberg published on Friday.
The co-founders described the fall of the
market-leading Singapore-based crypto hedge fund as ‘regrettable’.
However, Zhu and Davies dismissed claims that
they took money from the fund before its fall.
After the Terra-Luna fiasco in May, 3AC lost
$200 million as a result of its huge trading position.
Further, the hedge fund business lost at
least $400 million during the recent crypto market crash.
Zhu said 3AC collapsed because it placed
leveraged trades with the expectation that the crypto market would pick up.
The 3AC executives said that they are cooperating
with authorities and decided to keep a low profile because of death
threats.
Mobile crypto broker Voyager Digital, also
recently disclosed that 3AC defaulted on a loan of over $670 million.
Another crypto broker, Genesis Global Trading,
filed a $1.2 billion claim against the insolvent company.
Moving to Dubai?
According to the Bloomberg interview, the
co-founders spoke from an undisclosed location.
They are also destined for Dubai, the United Arab Emirates, according to a lawyer said to be on the call.
“Given that we had planned to move the business
to Dubai, we have to go there soon to assess whether we move there as
originally planned or if the future holds something different for us,” Zhu told
Bloomberg.
Last month, a court in the British Virgin Islands ordered the liquidation of 3AC.
Finance Magnates reported that partners from Teneo Restructuring, a global advisory firm, were tasked with manning the insolvency process.
Teneo Restructuring advises corporates, creditors and other financial stakeholders in all situations.
Su Zhu and Kyle Davies, the Founders of the
bankrupted cryptocurrency hedge fund, Three Arrows Capital (3AC), have finally
spoken on the fund’s collapse.
They broke their over-one-month-old silence in an
interview with Bloomberg published on Friday.
The co-founders described the fall of the
market-leading Singapore-based crypto hedge fund as ‘regrettable’.
However, Zhu and Davies dismissed claims that
they took money from the fund before its fall.
After the Terra-Luna fiasco in May, 3AC lost
$200 million as a result of its huge trading position.
Further, the hedge fund business lost at
least $400 million during the recent crypto market crash.
Zhu said 3AC collapsed because it placed
leveraged trades with the expectation that the crypto market would pick up.
The 3AC executives said that they are cooperating
with authorities and decided to keep a low profile because of death
threats.
Mobile crypto broker Voyager Digital, also
recently disclosed that 3AC defaulted on a loan of over $670 million.
Another crypto broker, Genesis Global Trading,
filed a $1.2 billion claim against the insolvent company.
Moving to Dubai?
According to the Bloomberg interview, the
co-founders spoke from an undisclosed location.
They are also destined for Dubai, the United Arab Emirates, according to a lawyer said to be on the call.
“Given that we had planned to move the business
to Dubai, we have to go there soon to assess whether we move there as
originally planned or if the future holds something different for us,” Zhu told
Bloomberg.
Last month, a court in the British Virgin Islands ordered the liquidation of 3AC.
Finance Magnates reported that partners from Teneo Restructuring, a global advisory firm, were tasked with manning the insolvency process.
Teneo Restructuring advises corporates, creditors and other financial stakeholders in all situations.
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