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Zhu claimed that “the potentially draconian consequences arising from the Liquidators’ exercise of their wide powers” might send him and Davies to jail.
Su Zhu, one of the Co-Founders of the troubled crypto hedge fund Three Arrows Capital (3AC), is reportedly worried about avoiding heavy criminal penalties. At the end of June, a court in the British Virgin Islands ordered the liquidation of 3AC. Not long after, rumors surfaced that their top executives Su Zhu and Kyle Davies had fled Singapore, while numerous crypto companies confirmed they had been exposed to failed companies.
Prison Penalty for Knocking on the Door
According to a recent Bloomberg report, Zhu personally delivered his affidavit a few weeks ago in Thailand. In it, he claimed he was concerned about the “potentially brutal consequences for the liquidators to exercise their broad authority.” The consulting firm, appointed by a court in the British Virgin Islands to liquidate 3AC’s assets – Teneo – “strongly disagreed” with the view that Zhu’s lawyers had overstepped their authority.
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“We 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,” a company statement added.
A separate group of lawyers recently accused Su Zhu and Kyle Davies of not cooperating despite the significant damage their company has inflicted on users. They also claimed that the duo left Singapore and their whereabouts are unknown:
“The foreign representatives understand and believe that while the debtor has had certain operations in Singapore, Mr. Davies and Mr. Zhu’s current location remains unknown. They are rumored to have left Singapore.”
How Zhu and Davies Explained the Crash
Zhu and Davies finally talked about their company’s problems and what caused their collapse. They argued that the combination of simultaneously collapsing one-way bets and harmonious credit arrangements started the downtrend, followed by the crypto market crash exacerbating the freefall. Contrary to the accusations against them, the manager said that he and his partner had done everything possible to prevent disaster:
“People might call us stupid. They might call us stupid or delusional. And, I’ll admit it. Maybe. But they’re going to, you know, say I ran out of money during the last period where I actually put back more of my personal money.”
Later, Zhu did not confirm the rumors whether he is currently residing in Dubai. She assured, however, that she and Davies are in constant cooperation with the Singaporean authorities.