3AC liquidators look to recoup $1.3B from founders
Teneo, the liquidators behind bankrupt hedge fund Three Arrows Capital (3AC), are reportedly seeking to recover roughly $1.3 billion in 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 billion in debt when 3AC was already insolvent, adding to creditors’ losses. 3AC reportedly owed creditors $3.5 billion, making the founders’ potential liability more than a third of the total debt.
A Teneo spokesperson told Cointelegraph that the goal of seeking $1.3 billion from the 3AC founders was “generally reflective” of a June 27 creditor presentation. At the time of publication, court documents did not appear to include this information.
The report came exactly one year since a court in the British Virgin Islands ordered 3AC into liquidation on June 27, 2022. In July 2022, the firm also made a Chapter 15 filing in U.S. Bankruptcy Court in the Southern District of New York.
Though Davies and Zhu have remained active on social media through the liquidation process, their physical whereabouts have been largely unknown. In June, the pair helped launch the Open Exchange, a platform for trading claims against bankrupt crypto entities.
3AC is dead, long live 3AC Ventures https://t.co/61s8uQquOZ
Related: 3AC: A $10B hedge fund gone bust with founders on the run
Lawyers for the liquidators in the U.S. have also attempted to make Davies and Zhu answer in court during the bankruptcy proceedings. Both 3AC founders have been issued digital subpoenas, and the legal team sought to hold Davies in contempt of court for having “repeatedly defied their obligations”.
Among the 3AC founders’ former assets included a digital art collection being auctioned off
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