{"id":1641456,"date":"2022-08-27T10:22:52","date_gmt":"2022-08-27T14:22:52","guid":{"rendered":"https:\/\/platoaistream.net\/?post_type=station&p=1641456"},"modified":"2022-08-27T12:04:19","modified_gmt":"2022-08-27T16:04:19","slug":"3ac-co-founder-concerned-about-facing-prison-time-report","status":"publish","type":"station","link":"https:\/\/platoaistream.net\/plato-data\/3ac-co-founder-concerned-about-facing-prison-time-report\/","title":{"rendered":"3AC Co-Founder Concerned About Facing Prison Time (Report)"},"content":{"rendered":"
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Su Zhu \u2013 one of the Founders of the distressed crypto hedge fund Three Arrows Capital (3AC) \u2013 is reportedly worried about fronting severe law punishment. Specifically, the Singaporean said he, Kyle Davies, and other executives could face \u201cfines and imprisonment\u201d for being in charge of the troubled company.<\/p>\n

At the end of June, a court in the British Virgin Islands ordered 3AC into liquidation. Shortly after, numerous crypto firms confirmed exposure to the failed company, while its top executives Su Zhu and Kyle Davies were rumored to have fled Singapore.<\/p>\n

A Prison Sentence Knocking on the Door<\/h2>\n

According to a recent Bloomberg report<\/a>, Zhu delivered his affidavit in person in Thailand several weeks ago. In it, he claimed he is concerned about \u201cthe potentially draconian consequences arising from the Liquidators\u2019 exercise of their wide powers.\u201d The executive is worried that there is a real chance he and some other managers at the organization will go behind bars.<\/p>\n

The advisory firm appointed by a court in the British Virgin Islands to liquidate 3AC\u2019s assets \u2013 Teneo \u2013 \u201cstrongly disagreed\u201d with Zhu\u2019s viewpoint that their lawyers have overstepped their authority.<\/p>\n

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\u201cWe remain optimistic that such parties will provide access to complete records and all relevant information to enable us to discharge our responsibilities fully in the interests of the creditors of 3AC,\u201d a company statement added.<\/p>\n<\/blockquote>\n

A separate group of lawyers recently accused<\/a> Su Zhu and Kyle Davies of being uncooperative despite the significant harm their company has caused to users. Moreover, they claimed that the duo had left Singapore and their whereabouts are unknown:<\/p>\n

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\u201cThe foreign representatives understand and believe that while the debtor has had certain operations in Singapore, Mr. Davies and Mr. Zhu\u2019s current location remains unknown. They are rumored to have left Singapore.\u201d<\/p>\n<\/blockquote>\n

The collapse of 3AC was considered a significant hit for the sector since some of its high-profile creditors include BlockchainCom and Voyager Digital. Some sources estimated the hedge fund owns<\/a> around $3.5 billion to 27 firms.<\/p>\n

How Zhu and Davies Explained the Crash<\/h2>\n

After being silent for a while, Zhu and Davies finally spoke about their company\u2019s problems and what caused its decline a few weeks back. They argued<\/a> that the combination of one-way bets and accommodative lending arrangements that collapsed simultaneously started the downtrend, while later, the crypto market crash exacerbated the freefall.<\/p>\n

Zhu believes the \u201cnail in the coffin\u201d for Three Arrows Capital was when bitcoin tumbled from over $30,000 to below $20,000. Contrary to the accusations against them, the executive said he and his partner did everything possible to prevent the catastrophe:<\/p>\n

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\u201cPeople might call us stupid. They might call us stupid or delusional. And, I\u2019ll admit it. Maybe. But they\u2019re going to, you know, say I ran out of money during the last period where I actually put back more of my personal money.\u201d<\/p>\n<\/blockquote>\n

Subsequently, Zhu did not confirm the rumors about whether he currently resides in Dubai. However, he assured that he and Davies are in constant collaboration with the Singaporean relevant authorities.<\/p>\n

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