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After five weeks in hiding, the two co-founders of Three Arrows Capital (3AC) appeared to tell the full truth after the collapse and the current situation of the fund.
Like CHK has continuously updated, since the liquidity crisis began to erupt on a large scale sparked by “Chain effect” stETH – Alameda – CelsiusOne of the most popular investment funds in the crypto industry, Three Arrows Capital (3AC), has been severely impacted. The liquidity problem is like the second “preemptive blow” that 3AC has to suffer, because the fund has suffered heavy losses because of the collapse of LUNA-UST before.
On the other hand, due to overusing leverage to invest and participate in the derivatives market, when the market went down, 3AC was continuously liquidated massively by lenders. However, it happened too quickly and 3AC gradually lost its ability to repay, leading to a series of lending platforms that were also on the verge of bankruptcy or suffered serious losses.
Since then, the two founders of 3AC, Zhu Su and Kyle Davis, have “disappeared”, there are many reports that the two are not cooperating with the asset liquidator. It was not until July 12 that Zhu Su reappeared, but only through a few lines of notices on his personal page to “claim wrongly” about the above allegations after filing for bankruptcy in a New York court.
Because the circumstances are quite complicated and many series of events arise during the 3AC incident, please read the most detailed reference through the article and video below to get the most overview:
Now, on July 22, both Zhu Su and Kyle Davis have suddenly “revealed” and shared directly with Bloomberg the whole truth about 3AC’s story.
Three Arrows Capital’s disgraced founders Su Zhu and Kyle Davies say easy credit worsened wrong-way bets https://t.co/D8Rwkx9K2u
— Bloomberg Asia (@BloombergAsia) July 22, 2022
Zhu Su admitted that the collapse caused widespread “pain” in the crypto industry. He asserted that 3AC had suffered heavy losses, and denied allegations that he had withdrawn money from 3AC before everything got out of control.
“People may call us stupid or delusional. I will admit that. But you know, they would say I actually got more of my money back in the last 3AC period. It’s not true.”
Meanwhile, co-founder Kyle Davis shared:
“The whole thing is regrettable. I know that a lot of people have lost a lot of money.”
3AC’s creditors recently filed with the Court in the British Virgin Islands to report that 3AC owes them more than $3.6 billion in unsecured debts. Court documents show this number is expected to increase significantly. To date, liquidators have gained control of new assets of only $40 million.
Discussing market confidence, Zhu Su said that during the crisis period, 3AC still believed that the whole market would grow again, but the results were contrary to the fund’s expectations.
“We were *said to ourselves* that the market would recover soon but it didn’t, unfortunately.”
Mr. Kyle Davis also added:
“We have complete confidence in the market. We had all, almost all of our possessions. In the uptrend, we did the best. And then in the bad times, we lost the most.”
Regarding the alleged act of taking loan money to buy a yacht worth $ 50 million from the accusations by creditors, Zhu Su directly asserted that this was a smear on the honor of organizations. directed at him personally. Zhu Su rejected the argument that he preferred a lavish lifestyle, instead cycling to and from work every day as his family only has two houses in Singapore.
However, the two co-founders said they are moving to Dubai. Zhu Su’s main hope is to complete the liquidation process in a calm and orderly manner.
“There are so many crazy people in the crypto space that they use death threats against Kyle and me, so temporarily moving to Dubai will allow us to be physically safe and keep our lives safe. give yourself a track record to avoid being tracked.”
Besides, Zhu Su revealed that because the two had planned to move their business to Dubai in advance, they will have to move here soon to assess whether they can exploit any new potential or not. In the end, he stated that everything is going very smoothly and that 3AC’s main focus is on assisting the recovery process for creditors.
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