key takeaways
- Su Zhu has reportedly submitted an affidavit claiming that Three Arrows Capital has defrauded the High Court of Singapore.
- According to Bloomberg, Zhu personally delivered the note in Bangkok on August 19.
- It is the latest development in an ongoing battle between Three Arrows and its liquidators after the firm exploded in June.
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Bloomberg reported that Zhu submitted an affidavit in Bangkok on August 19.
Zhu says liquidators misled the court
Su Zhu is still pushing against the liquidators of Three Arrows Capital.
as of friday bloomberg report goodThe co-founder of the bankrupt crypto hedge fund submitted an affidavit in Bangkok on August 19, claiming that the firm’s liquidator had used “misleading and inaccurate” information in his case in the High Court of Singapore.
Tenno, the firm responsible for liquidating the remaining assets of Three Arrows from the firm’s June blasts, was allowed by the Singapore High Court to initiate liquidation proceedings on Wednesday. Teneo previously claimed that Zhu and his co-founder Kyle Davis had been uncooperative in the process, leading Zhu to a tweet accusing the firm of “cheating.”
Unfortunately, our good faith to cooperate with the liquidators was tempted. Hope he has exercised good faith with respect to the Starkware token warrant. pic.twitter.com/CF73xI8r6n
— zhu su (@zhusu) 12 July 2022
After Three Arrows collapsed during a market crash, Zhu and Davis went silent and were accused of evading questions from creditors and liquidators. By 22 July, he was widely believed to be on the run. bloomberg Interview The pair revealed that they were intending to travel to Dubai (Three Arrows was due to move from Singapore to Dubai prior to its eruption).
Zhu’s note delivered in Thailand marks the latest development in the week-long conflict between Three Arrows and its liquidators. according to bloomberg report, Zhu argued that Teneo “did not provide a completely complete or accurate version of events” relating to Three Arrows and its properties.
“Potentially Harsh Consequences”
In the affidavit, Zhu reportedly outlined a network of Three Arrows-related entities registered in Singapore, Delaware and the British Virgin Islands. Key to this network is Three Arrows Capital Pte Ltd, a firm Zhu is a director of launched in 2013 and was registered as of July 31, 2021. According to the report, Zhu has said that it may not be able to meet with the firm. The liquidator demands, and he fears “potentially dire consequences” if Tenno is allowed to exercise his powers to liquidate assets from the entity. He also claimed that he and other representatives belonging to Three Arrows Capital Pvt Ltd could face fines or jail, the report said.
Until the market crash in June, Three Arrows was crypto’s most prolific hedge fund. It ran into problems after betting big on LUNA, Terra’s volatile token, which crashed to zero after UST lost its peg in May. It was then revealed that after bitcoin fell to its lowest level in 18 months, the company had defaulted on several nine- to 10-digit loans such as Genesis Trading and Voyager Digital, resulting in the liquidation of several crypto lenders. . Three Arrows filed for Chapter 15 bankruptcy in July and Zhu and Davis have mostly remained silent.
Disclosure: At the time of writing, the author of this article owns ETH and several other cryptocurrencies.