According to Su Zhu, Three Arrows Capital’s liquidators deceived the High Court of Singapore with “misleading and erroneous” material.
Bloomberg reported on Friday that the co-founder of the failed crypto hedge fund filed an affidavit in Bangkok on August 19, alleging that the firm’s liquidators used “misleading and erroneous” material in their lawsuit before the High Court of Singapore.
Wednesday, the Singapore High Court authorized Teneo, the business responsible for liquidating Three Arrows’ remaining assets after the company’s June collapse, to commence liquidation procedures. Teneo had earlier alleged that Zhu and his co-founder Kyle Davies were recalcitrant during the process, prompting Zhu to accuse the company of “baiting” in a tweet.
After Three Arrows failed during the market meltdown, Zhu and Davies remained mute and were accused of evading creditors’ and liquidators’ queries. They were generally believed to be on the run until they stated in a July 22 Bloomberg interview that they planned to go to Dubai.
Zhu allegedly revealed in the affidavit a network of Three Arrows-related firms established in Singapore, Delaware, and the British Virgin Islands. Three Arrows Capital Pte Ltd, a company founded by Zhu in 2013 and registered until July 31, 2021, is essential to this network.
According to the article, Zhu has said that this company may not be able to pay the liquidator’s requests, and he fears “possibly draconian repercussions” if Teneo is permitted to liquidate the entity’s assets. According to the newspaper, he also alleged that he and other Three Arrows Capital Pte Ltd officials might face penalties or imprisonment.