September 21, 2023

Three Arrows Capital Liquidators: 'Hedge Fund Founders Ignore Their Commitments'

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Three Arrows Capital Liquidators: 'Hedge Fund Founders Ignore Their Commitments'

The liquidators of Three Arrows Capital (TAC) reported that the founders of the bankrupt cryptocurrency hedge fund deliberately do not contact and hide their whereabouts.

Bankruptcy of Three Arrows Capital overseenTeneo crisis managers Russell Crumpler and Christopher Farmer. They allege that TAC co-founders Kyle Davies and Su Zhu are thwarting attempts to get in touch with them knowing about the subpoena.

As stated in the documents filed with the courtNew York City bankruptcy court, TAC liquidators called the founders of the fund for court hearings as early as January 5. Davis and Zhu had until January 26 to respond to the subpoena, but the deadline passed, and the liquidators demanded that the court set a new deadline of March 16.

"No doubt Kyle Davis and Su Zhu know aboutsubpoena - they were noted in 41 replies and 64 retweets. Once again, they decided to ignore their obligations to Three Arrows Capital,” the liquidators complain.

The founders of TAC have been in hiding since Junelast year, their multi-billion dollar hedge fund collapsed, leading to a protracted bankruptcy. Despite the lawsuits, Davis and Zhu remain active on social media. In January, the creators of TAC made headlines when they announced plans to raise $25 million to launch a new cryptocurrency service.

In October, Three Arrows Capital took up arms againstUS regulators: Commodity Futures Trading Commission (CFTC) and US Securities Commission (SEC). They suspect the fund of violating securities laws and misleading investors.