1000+ Page Legal Document Reveals Details About Bankrupt 3AC
2022.07.19 21:50
1000+ Page Legal Document Reveals Details About Bankrupt 3AC
- Three Arrow Capital collapsed after a sequence of risky trades and borrowing.
- A document reveals that 3AC owes $3.5 billion to 27 companies.
- As per the document, the presence of Zhu and Davies is currently unknown.
A recent court document reveals that Three that Arrows Capital (3AC) owes 27 different companies. After its sequence of risky trades and borrowing, 3AC was forced to collapse, with its founders quickly fleeing the scene and filing for Chapter 15 bankruptcy on July 12.
Jack Neiwold, the founder of Crypto Pragmatist, posted a series of posts on Twitter (NYSE:TWTR) about the revealed document:
Three Arrows Capital was one of the biggest crypto hedge funds, at one point managing over $10 billion in capital—Until the founders dropped off the map.A 1000-page legal document came out today, bringing clarity to the case. I went through it. This is what I found:
— Jack Niewold (@JackNiewold) July 18, 2022
The document reveals that 3AC owes $3.5 billion to 27 different companies including Blockchain.com and Vogater Digital. However, the biggest creditor on this list is Genesis, with a whopping $2.3 billion loaned to 3AC.
Additionally, the document also reveals a court paper that asked the Singapore Government (where 3AC is originally located) to recognize the liquidation proceeding and cooperate with liquidators.
(Source: Twitter)
Furthermore, the document claims that the founders of 3AC, Kyle Davies and Su Zhu, bought two luxury bungalows and a yacht in Singapore.
The document reads as follows:
Su Zhu and Kyle Davies ( the owners of 3AC ) have also reportedly made a down-payment on a US$50 million yacht that has yet to be delivered to Italy in the next two months.
Further examination reveals that the borrowed funds were likely used to purchase the assets.
This document further discloses that during online proceedings for liquidation, both Kyle and Su were on a call with the camera turned off and the microphone muted.
Persons identifying themselves as “Su Zhu” and “Kyle” were present at the zoom call. But their video was off, and they were on mute at all times. Neither of them spoke despite questions being fielded in their direction.
As per the document, the presence of Zhu and Davies is currently unknown. Zhu was last seen responding to a Twitter post discussing the accusations on July 12.
Continue reading on CoinQuora
