Su Zhu and Kyle Davies – Co-Founders of the distressed cryptocurrency hedge fund Three Arrows Capital (3AC) – explained that accumulative lending agreements and the collapse of the digital asset market are the reasons for the fall of their project. In addition, they said accusations against them of living a lavish lifestyle on the back of broke customers are wrong.
“The whole situation is regrettable”
Singapore-based crypto firm – Three Arrows Capital – was among the entities most affected due to the digital asset market crash. In June it failed to respond to margin calls, while earlier that month a court in the British Virgin Islands ordered it into liquidation.
The fall of 3AC was considered a significant punch for the industry since some of its high-profile creditors include Voyager Digital and BlockchainCom. Some sources revealed that the organization owns nearly $3.5 billion to 27 entities.
Speaking in detail about the company’s problems and the cause of this collapse, co-founders Su Zhu and Kyle Davies. According to them, the combination of one-way bets and dovish loan deals that collapsed simultaneously triggered the downtrend, which was later exacerbated by the market’s fall.
More specifically, Zhu informed that BTC’s massive drop from over $30,000 to and below $20,000 was the “nail in the coffin” for the hedge fund.
Zhu claimed that he and his partner had done everything possible to avoid the turmoil, including investing personal funds:
“People might call us stupid. They might call us stupid or delusional. And, I admit it. Maybe. But they’ll, you know, say I ran out of money in the last period where I actually handed over more of my personal money.
Zhu also stated that the executive received multiple death threats, which forced them to run away from Singapore. Rumors say they have moved to Dubai, but Zhu did not confirm. He assured that despite the allocation, both are in constant collaboration with the Singaporean relevant authorities.
Spoiling with user funds is not true
The executives were also accused of buying a $50 million luxury yacht days before 3AC went bankrupt. Zhu believes the speculation is “part of a smear campaign” and explained that the boat was purchased a year ago.
The Co-Founders also noted that driving expensive cars and living a lavish lifestyle were never part of their daily routine. In fact, Zhu asserted that he biked to work and back every day and that his family had “only two homes in Singapore.”
“We’ve never been seen spending a lot of money at a club. We’ve never been seen, you know, driving Ferraris and Lamborghinis. I think that kind of vagueness just comes from a classic playbook , you know, when that kind of stuff happens, when the funds are blown, you know, those are the kind of titles that people like to play,” he concluded.
