Two of Three Arrows Capital’s (3AC) founders, who have been in hiding for the last five weeks, have come out of the shocking collapse of their once-promising cryptocurrency hedge fund.
According to a July 22 Bloomberg article, Su Zhu and Kyle Davies say that their crypto speculation prompted escalating margin calls on loans that should never have been given in the first place.
Before its collapse, the two 35-year-olds had transformed 3AC into a crypto trading juggernaut, bankrupting creditors and quickening a selloff that resulted in significant losses for Bitcoin and other token investors.
They acknowledged that the collapse caused a great deal of misery, but for the most part, they skirted questions about how it affected individuals in linked businesses. Instead, they underlined the substantial losses they had sustained while rejecting the claims that they had withdrawn funds from 3AC before things went wrong.
Zhu said: People may refer to us as dumb. They may refer to us as idiots or crazy. And I’m okay with it. However, they will claim that I embezzled monies during the most recent time when I contributed more of my own money. That is not correct.”
Zhu said they are in contact with officials
The advisors in charge of liquidating the fund said in papers filed on July 8 that Zhu and Davies had not cooperated with them and that the whereabouts of the firm’s founders were unknown. Zhu said they were forced to go into hiding after receiving death threats.
During a telephone call with Davies and two lawyers from Solitaire LLP, Zhu said, “This does not imply that we have not been in contact with the appropriate agencies.”