3AC liquidators look to recoup $1.3B from founders

Teneo, the liquidators down bankrupt hedge money Three Arrows Capital (3AC), are reportedly seeking to retrieve astir $1.3 cardinal successful funds from founders Su Zhu and Kyle Davies.

According to a June 27 Bloomberg report, the liquidators claimed Davies and Zhu incurred the $1.3 cardinal successful indebtedness erstwhile 3AC was already insolvent, adding to creditors’ losses. 3AC reportedly owed creditors $3.5 billion, making the founders’ imaginable liability much than a 3rd of the full debt.

A Teneo spokesperson told Cointelegraph that the extremity of seeking $1.3 cardinal from the 3AC founders was “generally reflective” of a June 27 creditor presentation. At the clip of publication, tribunal documents did not look to see this information.

The study came precisely 1 twelvemonth since a tribunal successful the British Virgin Islands ordered 3AC into liquidation connected June 27, 2022. In July 2022, the steadfast besides made a Chapter 15 filing successful U.S. Bankruptcy Court successful the Southern District of New York.

Though Davies and Zhu person remained progressive connected societal media done the liquidation process, their carnal whereabouts person been mostly unknown. In June, the brace helped motorboat the Open Exchange, a level for trading claims against bankrupt crypto entities.

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Related: 3AC: A $10B hedge money gone bust with founders connected the run

Lawyers for the liquidators successful the U.S. person besides attempted to marque Davies and Zhu reply successful tribunal during the bankruptcy proceedings. Both 3AC founders person been issued integer subpoenas, and the ineligible squad sought to hold Davies successful contempt of tribunal for having “repeatedly defied their obligations”.

Among the 3AC founders’ erstwhile assets included a integer creation collection being auctioned disconnected done Sotheby’s. Pieces that were a portion of the postulation similar Dmitri Cherniak’s artwork ‘The Goose’ sold for $6.2 million successful June.

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