Three Arrows Capital Liquidators Demand $1.3B from Bankrupt Fund Founders in Legal Battle
The legal fallout from the collapse of cryptocurrency hedge fund Three Arrows Capital (3AC) continues, with liquidators intensifying their efforts to recoup losses. Liquidators at bankrupt cryptocurrency hedge fund Three Arrows Capital (3AC) are seeking to recover $1.3 billion from the co-founders, a person familiar with the situation confirms.
At the heart of the matter, according to multiple reports, including from Bloomberg, is a substantial sum: approximately $1.3 billion. Teneo, the liquidator behind bankrupt hedge fund Three Arrows Capital (3AC), is reportedly seeking to recover roughly $1.3 billion in funds from 3AC founders Su Zhu and Kyle Davies. Liquidators in the Three Arrows Capital bankruptcy case are hoping to recover $1.3 billion from co-founders Su Zhu and Kyle Davies, representing a significant blow to the already-strained relationship between the creditors of the hedge fund and its former leadership.
The liquidators of the bankrupt ‘digital currency’ hedge fund Three Arrows Capital (3AC) seek $1.3 billion from its founders, Zhu Su and Kyle Davies. According to court filings, Three Arrows Capital liquidators are seeking to recover $1.3 billion from the co-founders of the failed crypto hedge fund, an amount that reflects losses the founders are allegedly responsible for.
Beyond this claim against Zhu and Davies, the liquidators for Three Arrows Capital (3AC) have also sued Terraform Labs. A key element of this broader legal strategy is the allegation that TerraForm induced 3AC to purchase Luna and TerraUSD, contributing to the hedge fund's downfall and subsequent bankruptcy. This lawsuit adds another layer of complexity to the already intricate web of legal battles surrounding the 3AC collapse.
The demand for $1.3 billion represents a critical juncture in the Three Arrows Capital bankruptcy proceedings. Bloomberg has reported that liquidators responsible for the bankrupt hedge fund Three Arrows Capital (3AC) seek to recover approximately $1.3 billion in funds from the fund’s co-founders. The outcome of this legal battle will likely have significant implications for creditors seeking to recover their losses and set a precedent for future cryptocurrency insolvency cases.