Three Arrows Capital co-founder files $5M claim against own firm

Key Takeaways:

  • The total value of all claims against 3AC is now $2.8bn
  • DeFiance, Voyager, others suffering consequences of 3AC's bankruptcy.
Image by Sang Hyun Cho from Pixabay
Image by Sang Hyun Cho from Pixabay

LAGOS (CoinChapter.com) — The bankruptcy crisis plaguing cryptocurrency hedge fund Three Arrows Capital (3AC) has taken a new twist as one of its founders, Zhu Su, has entered his name into the list of creditors.

In detail, Zhu Su joined a lengthy list of creditors, filing a claim of $5 million against his own company. Soldman Gachs, another creditor to Three Arrows Capital, revealed the development through his Twitter account (@DrSoldmanGachs).

This development is a shock to the crypto community because both founders of the firm have been declared missing. Furthermore, a court document disclosed that Zhu and Kyle Davies’s whereabouts were unknown after their firm went bankrupt.

Teneo Restructuring, a firm appointed by the British Virgin Islands court to liquidate the embattled hedge funds, also noted that the duo’s whereabouts were unknown.

However, due to his new claim, creditors are hoping to meet Zhu at a scheduled meeting for creditors. Teneo Restructuring scheduled a meeting for Three Arrows Capital creditors today. Since Zhu is one of the creditors, according to Soldman Gachs, the likelihood of him being present at the meeting is high.

“All creditors have been invited to submit claims and to attend the first meeting of creditors to be held on Monday, July 18, 2022, at 10:00 am BVI time.”

Gachs tweeted.

Crypto Community Reacts To Zhu Su’s Claim

Meanwhile, several persons in the crypto community have slammed Three Arrows Capital cofounder following his claim. For example, a Twitter user described Zhu’s move as another fraudulent attempt to escape justice.

“Standard process, first they drive the business up and over the rocks due to gross ineptitude. Then they file claims as creditors for bonuses, pay, and whatever else they think they’re due.”

Augustus Medici said.

The Monetary Authority of Singapore had slammed Three Arrows for providing false information and breaching an asset under management threshold. It is worth noting that the total value of all claims against Three Arrows Capital now stands at $2.8 billion. However, the amount is expected to increase because more claims are yet to come.

More Firms Affected By Three Arrows Capital Collapse

Additionally, more and more firms are suffering the consequences of Three Arrows Capital’s bankruptcy. DeFiance Capital is the latest company to disclose the adverse effect 3AC collapse is having on its platform.

In a statement published on Twitter, DeFiance CEO Arthur Cheong said the company is “materially affected” and “prejudiced” by the liquidation of 3AC.

“Like many counterparties which had dealings with 3AC. The business of DC has been materially affected and indeed prejudiced by the liquidation of 3AC. Arthur Cheong is committed to taking all necessary steps to protect, preserve and recover all assets which are and were owned in the context of DC’s business.”

DeFiance said.

Furthermore, crypto exchange Blockchain.com reportedly faces a $270 million hit on loans to 3AC. Similarly, Voyager Digital filed for Chapter 11 bankruptcy protection after 3AC couldn’t pay back the roughly $670 million it had borrowed from the company.

Crypto lenders Genesis and BlockFi, crypto derivatives platform BitMEX and crypto exchange FTX are also being hit with losses.

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Three Arrows Capital, Three Arrows Capital co-founder files $5M claim against own firm

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