Su Zhu, the prominent face behind the liquidated crypto hedge fund, Three Arrows Capital (3AC) has shared his first tweets in about 4 weeks since his firm notably sank. With investors seeking communication about the way forward, Zhu’s silence has drawn criticism across the board.
While he did not state why he and co-founder Kyle Davies has been silent, he did highlight that the firm’s efforts to cooperate with Teneo Restructuring, the firm in charge of its liquidation process have been met with baiting.
Sadly, our good faith to cooperate with the Liquidators was met with baiting. Hope that they did exercise good faith wrt the StarkWare token warrants. pic.twitter.com/CF73xI8r6n
— Zhu Su 🔺 (@zhusu) July 12, 2022
“Sadly, our good faith to cooperate with the Liquidators was met with baiting. Hope that they did exercise good faith wrt the StarkWare token warrants,” Zhu tweeted, adding a screenshot of email sent from his lawyer Advocatus Law LLP’s Christopher Anand Daniel.
Counter Claims About Three Arrow Capital’s Su Zhu Cooperation
The company’s bankruptcy court papers on Friday revealed that Su Zhu and the 3AC team are not offering meaningful cooperation to the ongoing restructuring process.
“It has come to our clients’ attention that you have made an application in the United States of America, alleging that they have not been cooperating with you in any meaningful way, and detailing some of the discussions, and the manner in which we had them, on 8 July 2022,” Christopher said, per the shared screenshot, countering the claims, “It now appears clear why your Singapore solicitors were keen to ask if the discussions were on a ‘without prejudice’ basis. It was to use the discussions in Court filings without notice to our clients.”
As gleaned, the liquidators have also failed to exercise StarkWare’s token purchase offer, a move that greatly devalues 3ACs valuation, as well as the interests of Su Zhu, a director, a creditor, and an investor in 3AC.
Three Arrows Capital was one of the principal backers of StarkWare, an Israel-based blockchain startup that offers Ethereum-hinged scalability, permissionless, and decentralized ZK-rollups for deploying smart contracts. With the restructuring firm failing to exercise StarkWare tokens, it means 3AC and Zhu do not have any claims to it, marking a major loss moving forward.
Christopher demanded a number of explanations from the restructuring team, however, investors will seem more pacified with more openness on all parties involved in a bid to allay all fears.