- They accused Su Zhu and Kyle Davis of using a lot of leverage after bankruptcy
- The allegations were discussed at a meeting with 3AC creditors today
Liquidators of Three Arrows Capital trying to receive $1.3 billion from the co-founders of the bankrupt hedge fund. Since the collapse of the Terra ecosystem in May last year, 3AC has suffered huge losses. And Su and Kyle are partly to blame for this.
According to the report, 3AC’s liquidators accuse its co-founders of using “significant leverage” during May-June 2022, following the fund’s severe losses. At that time, the liquidators were already considering 3AC as insolvent.
Actually, after the collapse of Three Arrows, Zhu and Davis were silent for several weeks, but gradually returned, first to social networks, and then to entrepreneurship. Already in April of this year, the couple teamed up with Mark Lemb, the founder of CoinFLEX, to launch a new business called OPNX. The platform did not achieve any success and after a few days received a warning from the Dubai regulator.
Earlier this month, the liquidators also asked a New York judge to fine Davis $10,000 a day. They explained that such a significant fine was justified, since Kyle did not respond to a subpoena regarding the production of business documents and other information.
In addition, they added that it is not known where Davis and Zhu now live, but in court documents that were mentioned earlier this month, it was reported that after the collapse of 3AC, Davis went to Bali.