Teneo, the liquidators behind 3AC, are seeking to recover roughly $1.3 billion
Bankrupt Three Arrows Capital (3AC) founders, Sun Tzu and Kyle Davies lost billions of dollars after the collapse of the Terra ecosystem that started in May 2022.
The liquidators of the company are now seeking $1.3B from the hedge fund’s founders.
3AC liquidators seek to recover funds
Teneo, the liquidators behind bankrupt crypto hedge fund, 3AC, are seeking to recover $1.3B from founders Sun Zhu and Kyle Davies.
The liquidators discussed the liabilities of the founders at a meeting on Tuesday with the hedge fund’s creditors, according to a Bloomberg report. The firm now owes creditors $3.5B, with the founders’ liability more than a third of the total debt.
This development comes after a year since a court in the British Virgin Islands ordered 3AC into liquidation on June 27, 2022. The firm also made a chapter 15 filing in the US Bankruptcy Court in the Southern District of New York.
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Davies and Zhu have been active on social media throughout the liquidation process, but little is known about their whereabouts. The two participated in the June launch of the Open Exchange, a marketplace for trading claims against insolvent cryptocurrency firms.
Lawyers to the creditors have said that Davies has repeatedly flouted his obligations during the bankruptcy process and have filed that the court holds him in contempt. Davies and Zhu have also been dodgy in answering the court and they have both been issued digital subpoenas.
3AC’s crash was a major event that triggered last year’s crypto winter, which had a domino effect on the downfall of other crypto companies who had exposure to the hedge fund. These included Genesis Asia Pacific, Celsius Network, and Voyager Digital, all of which later sought bankruptcy protection.
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