Zhu Su, the co-founder of the now-defunct crypto hedge fund Three Arrows Capital (3AC), has resurfaced on Twitter after a brief absence.
3AC Baited by Liquidators: Zhu
Zhu Su resurfaced in the public eye with a tweet accusing liquidators of baiting the company. After nearly a month of inactivity, the 3AC co-founder tweeted that the liquidators had enticed the company to use StarkWare token information in court.
Zhu includes an email from a legal counsel in his tweet, claiming that StarkWare equity had a token warrant that the liquidator did not exercise.
He wrote on Twitter: Unfortunately, our willingness to work with the Liquidators was met with baiting. I hope they acted in good faith regarding the StarkWare token warrants.
According to Zhu, it resulted in the loss of StarkWare tokens, which expired on July 5. As a result of failing to meet several margin calls from lenders, the company was forced to file for Chapter 15 bankruptcy.
The StarkWare Warrant was not exercised
Zhu had attached screenshots of what appear to be email communications between the fund’s legal counsel, Christopher Anand Daniel of Advocatus Law LLP, and a man named “Russell” were assumed to be the executives who liquidated 3AC. The following is an excerpt from one of the emails: 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 keeping with our clients’ desire to work reasonably with you. In order to save time, our clients are providing these on a rolling basis, and they will continue to work on obtaining the details of other assets. We hope you will notify the Court in the United States of America about this e-mail.
The Community Is Still Angry At The Founders
In May, the bear market had already destabilized 3AC. The crash of the Terra LUNA ecosystem, on the other hand, exacerbated the situation. Because 3AC had significant exposure to the now-defunct LUNA tokens, it lost approximately $550 million in the crash. The insolvency of the hedge fund impacted a number of other lenders. Voyager Digital, for example, has been severely impacted by the 3AC bankruptcy announcement because it defaulted on a $500 million loan. In addition, the hedge fund defaulted on a $1 billion loan from BlockFi.
Following the announcement of 3AC’s bankruptcy, both founders Zhu Su and Kyle Davies vanished. The company’s offices were also discovered to be abandoned, and a court document documented management’s lack of cooperation with the liquidators. As a result, Zhu’s recent tweet accusing the liquidators of baiting him and his month-long disappearance has earned him no points from the community, which accuses him of playing the ‘victim card.’
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