Key TPS Capital staffer departs as firm distances itself from 3AC: report

Stefan Chu, who used to head over-the-counter (OTC) trading at TPS Capital, has left the organization as the company seeks to distance itself from the bankrupt hedge fund Three Arrows Capital (3AC), according to a report by The Block. 

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Fast facts

• Chu had produced research reports for TPS Capital as of January 15 and December 18, labeled “State of the Blockchain Weekly Run” – versions of which were published on Telegram messaging app, where Chu had mentioned TPS as “The Official OTC desk for Three Arrows Capital”, The Block said.

• Chu left TPS in late July, The Block said in its report citing unnamed sources, while Chu describes himself as “ex TPS” on his Twitter profile.

• 3AC is now in liquidation after it failed to repay loans from various crypto institutions.

• TPS on July 7 released a statement on Twitter clarifying that it is “an independent legal entity and its operations are separate from those of 3AC”.

• TPS is not currently in communication with 3AC or its principles, the statement said, and has not been in communication since before the appointment of liquidators to 3AC. 

• TPS also clarified that 3AC was a shareholder of TPS for a brief period and has not held any shares since January 2021, while Su Zhu and Kyle Davies – 3AC’s founders – have indirect equity interests in TPS but as passive investors with no direct control over TPS’ everyday operations. 

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