Three Arrows Capital (3AC) liquidators are hoping to recover $1.3 billion from co-founders Su Zhu and Kyle Davies. Meanwhile, the co-founders have launched a new VC fund.
Three Arrows Capital liquidators are looking to recover $1.3 billion from the co-founders of the crypto hedge fund, according to reports. People familiar with the matter said that the amount “reflects losses the founders are accused of racking up in the months before the firm collapsed.”
Three Arrows Capital Liquidators Hope to Recover $1.3B
Liquidators in the Three Arrows Capital bankruptcy case are hoping to recover $1.3 billion from co-founders Su Zhu and Kyle Davies. The creditors of the hedge fund discussed the matter with the liquidators on June 27. Lawyers for the co-founders have not commented on the matter yet.
The liquidators have also stated that the co-founders are not cooperating with the investigation. In May and June 2022, Zhu and Davies were accused of taking hefty leverage following the crash of the Terra ecosystem. The liquidators state that the hedge fund was already insolvent at that point.
Despite the major crash that Three Arrows Capital has experienced, the founders have continued to operate in the market. They have launched a new VC fund called 3AC Ventures, which partnered with Open Exchange (OPNX). The latter is a platform for trading claims against bankrupt crypto firms.
The FTX collapse, Terra meltdown, and 3AC bankruptcy were significant events that rocked the crypto world. Meanwhile, major U.S. banks faced the “2023 banking crisis.” Explore our guide to delve deeper: 2023 US Banking Crisis Explained: Causes, Impact, and Solutions
OPNX claims that it has built itself for 20 million users with $20 billion in claims trapped in bankruptcy proceedings. FTX, Celsius, BlockFi, Genesis, and Voyager are among those customers. CoinFLEX executives and 3AC’s Kyle Davies and Su Zhu co-founded OPNX.
Sotheby’s Sale of 3AC NFTs Fetch $10M
Meanwhile, there have been other developments related to Three Arrows Capital taking place in the market. A recent sale of 3AC NFTs by Sotheby’s resulted in $10.9 million coming in. 3AC had spent $15.5 million on 37 NFTs in 2021.
Among the NFTs that were sold were “Ringers #879 (The Goose),” which is part of a series of 1,000 computer-generated abstract images by Dmitri Cherniak. Sotheby’s executives stated that there was a growing interest in digital art and NFTs.
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