co-founder of a collapsed cryptocurrencies hedge fund that was reportedly once worth $10 billion has hit back on accusations by liquidators that it is refusing to work with them.
Zhu Su, co-founder of Three Arrows Capital (3AC), tweeted: “Unfortunately, our good faith in working with liquidators has been met with agitation.”
In a lawsuit filed Friday, Three Arrows Capital (3AC) liquidators Russell Crumpler and Christopher Farmer said, “The physical whereabouts of the debtor’s founders, Zhu Su and Kyle Livingstone Davies, are currently unknown,” adding that : “The founders haven’t started working together yet… in a meaningful way.”
Farmer had tried to visit Su and Davies on their… Singapore offices, only to find them empty with the entrance locked and unopened letters against the doors.
The liquidators warned there was an “imminent risk” that the company’s assets could be sold by the founders of 3AC or others to the detriment of creditors.
In an email Su posted to Twitter, his lawyers said: “Our clients and their families have been threatened with physical assault and have had to answer questions from the Money Authority of Singapore over the past week, which has meant that they are under significant time pressure.”
The founders reportedly amassed a $10 billion fortune before a… Bitcoin sell-off saw the price of digital assets plummet. The company later filed for bankruptcy in the British Virgin Islands.
The fund’s demise destabilized several other crypto firms with which 3AC had close financial ties. Last month, 3AC defaulted on a $675 million loan from New York-based cryptocurrency broker Voyager Digital. Voyager later filed for bankruptcy after suspending customer trading, deposits and withdrawals.
Crypto exchange Blockchain.com is on the brink of losing a whopping $270 million in loans made to 3AC, Reuters reports.
In a tweet in June, 3AC said, “Committed to working this out, don’t believe everything written about us.”
The value of cryptocurrency assets has fallen 54% in the past three months, according to data from CoinMarketCap.