Three Arrows assets worth $40m were liquidated

According to a story published by Bloomberg News on July 21, the liquidator of Three Arrows Capital (3AC), Teneo, has taken custody of assets worth $40 million that belonged to the hedge fund.

The fund’s assets were claimed to consist of bank accounts, various cryptocurrencies, non-traditional financial instruments, and interests in other firms by the liquidators.

On July 20, a spokesman for Teneo named Russell Crumpler made the announcement that the founders of Three Arrows Capital, Kyle Davies, and Su Zhu, still have ownership of some digital assets and bank accounts. Crumpler claimed that Teneo had contacted around 40 businesses in which 3AC may have invested, in addition to approximately 30 cryptocurrency exchanges and banks.

In a second document that was submitted on July 8, the liquidators said that Zhu and Davies had been unhelpful and that they had been unable to find them. On the list of 3AC’s creditors are companies like Genesis, as well as defunct crypto lending platforms such as Voyager Digital and Celsius Network, as well as Algorand and CoinList. The hedge firm owes a total of $2.8 billion to its various creditors.

In the meanwhile, Su Zhu and the wife of Kyle Davies have both initiated legal action against the misappropriated hedge fund. According to a recently published article, the founders of Three Arrows Capital are now on route to Dubai and have refuted allegations that they are unwilling to cooperate with authorities.

According to the sources, they were driven into hiding as a result of the “death threats” they received; yet, they continued to communicate with the liquidator.

The collapse of the fund was partially attributed, according to the co-founders, to the death of Terra, which was also recognized. Zhu suggests that the possibility exists that they let their close friendship with Do Kwon cloud their judgment about the token.

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