Liquidators Seek $1.3 Billion from 3AC Founders

The liquidators of Three Arrows Capital (3AC) are seeking to recover $1.3 billion from the hedge fund’s founders, Su Zhu and Kyle Davies. The liquidators allege that Davies and Zhu incurred the debt after 3AC was already insolvent, adding to creditors’ losses.

3AC reportedly owed creditors $3.5 billion, making the founders’ potential liability more than a third of the total debt. The liquidators are seeking to recover the funds through a variety of means, including civil lawsuits and asset seizures.

Davies and Zhu have remained active on social media through the liquidation process, but their physical whereabouts are unknown. In June, they helped launch Open Exchange, a platform for trading claims against bankrupt crypto entities.

Lawyers for the liquidators have also attempted to make Davies and Zhu answer in court during the bankruptcy proceedings. Both 3AC founders have been issued digital subpoenas, and the legal team sought to hold Davies in contempt of court for having “repeatedly defied their obligations.”

The 3AC founders’ former assets include a digital art collection being auctioned off through Sotheby’s. One piece of the collection, Dmitri Cherniak’s artwork “The Goose,” sold for $6.2 million in June.

The liquidation of 3AC is a major blow to the crypto industry. The hedge fund was one of the largest in the space, and its collapse has shaken confidence in the market. The liquidators’ efforts to recover the funds from Davies and Zhu will be closely watched by the crypto community.

Here are some additional details:

The liquidators are seeking the funds on behalf of 3AC’s creditors.

The liquidators believe that Davies and Zhu may have hidden assets that could be used to repay creditors.

The liquidators are also seeking to freeze Davies and Zhu’s assets in order to prevent them from dissipating them.

The outcome of the liquidators’ efforts is uncertain, but they could potentially recover a significant amount of money for creditors.