Three Arrows (3AC) Founder Breaks Silence Over Bankruptcy Talks

Zhu Su, the founder of Three Arrows Capital (3AC), has rubbished the claims that he is not cooperating with liquidators. He has also accused the liquidators of breach of their duty.

Speaking out for the first time in a month on Twitter, he revealed that the effort to cooperate with the liquidators in good faith was met with baiting. He also attached two separate notices sent by Zhu Su’s legal team Advocatus Law LLP. 

3AC Founder Rubbishes Non-Co-toperation Claims

The notice by Christopher Anand Daniel, managing partner at Advocatus Law LLP, accuses liquidators of acting in bad faith and baiting the founders of 3AC. He reveals that the founders of 3AC have been receiving threats of physical violence and have been facing questions from the Monetary Authority of Singapore, which led to time pressure. 

The notice also threatens to seek appropriate sanctions from relevant authorities. Daniel also accuses the liquidators of releasing court filings in the media. Moreover, Daniel informs in the notice that Zhu Su and Kyle Davies will not attend the court proceedings today.

In a separate notice, Zhu Su’s legal team accuses the liquidators of breach of duty for the failure to exercise the StarkWare token purchase offer, which they claim has caused damage to the company’s value. The notice claims that Zhu Su is also an investor and creditor in the company, and has been adversely affected by this failure.

Daniel demans to know whether the liquidators reached out to StarkWare before 5 July 2022, which was the deadline for the StarkWare option. 

Experts Warn 3AC Bankruptcy Can Harm The Industry

Adam Cochran, a partner at Cinneamhain Ventures, warns that the refusal by Three Arrow Capitals to cooperate with the liquidators will massively hurt the crypto industry.

Cochran believes that 3AC’s non-cooperation can seriously change the timeline and severity of any forced selling by the liquidators. He reveals that 3AC’s non-cooperation will result in the forced liquidation of any tokens held by 3AC in custody or in exchanges.

Cochran also believes that this will lead to the liquidation of class share funds, loss of treasuries, and forced selling of any vesting positions. This could lead to a lot of damage to the crypto industry, especially during a bear market.

Cochran higlights that the 3AC debacle will further give reasons to regulators to not approve crypto products.