Three Arrows Capital (3AC) liquidators blasted co-founders Zhu Su and Kyle Davies for their non-cooperation affecting the process to return funds to creditors. British Virgin Islands court-appointed liquidator Teneo has seized $35.6 million from Three Arrows Capital’s bank accounts in Singapore and seeks $30 million from the sale of the “Much Wow” superyacht.
In a Friday filing in the U.S. Bankruptcy Court in the Southern District of New York, liquidator Teneo reported recovering $35.6 million cash, $2.8 million from forced redemptions of investments, as well as over 60 different crypto tokens and NFTs.
The liquidator also seeks $30 million from the sale of the “Much Wow” superyacht worth $50 million. Three Arrows founders have used company funds to purchase the superyacht but failed to make the final payment. Currently, the superyacht is in insolvency proceedings in the Cayman Islands, with the liquidator filing a $30 million claim in the case.
Liquidators also criticized Three Arrows Capital’s co-founders Zhu Su and Kyle Davies for not cooperating with the liquidators and willingly delaying the return of funds to creditors. Su and Davies have been vocal on social media accounts and giving interviews that justify their willingness to speak publicly, but not attend court proceedings.
Meanwhile, a Singapore high court ordered co-founders Zhu Su and Kyle Davies in a week to cooperate and submit affidavits outlining their dealings with the company.
Kyle Davies in a tweet recently criticized liquidators for refusing to engage with them constructively. He said there have still been no disbursements to creditors after months. Kyle Davies proposes to speak openly with all creditors to find a better way forward.
With Zhu Su and Kyle Davies agreeing to be in Dubai and Bali, lawyers are trying to subpoena them via Twitter. However, US Bankruptcy Judge Martin Glenn thinks such an order is ineffective as Zhu and Davies’ US citizenship is unclear.
Carlos Gomez, chief investment officer at crypto hedge fund Belobaba, said a precedent set in the New York Supreme Court allows serving notice via NFT into a person’s wallet.
“Not at all. It’s a true case. LCX v John Does. I presented the details in the last Int Bar Association conference here in Miami a month ago.”
Also Read: US SEC and CFTC To Investigate Three Arrows Capital
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