3AC Co-Founder Concerned About Facing Prison Time (Report)

Su Zhu, one of the founders of the troubled crypto hedge fund Three Arrows Capital (3AC), is said to be worried about facing severe law punishment. The Singaporean stated that he and Kyle Davies could face imprisonment and fines for their role in the management of the troubled company.

3AC was ordered into liquidation by a British Virgin Islands court at the end of June. Numerous crypto firms were quick to report on the failure of 3AC. Meanwhile, Su Zhu, Kyle Davies, and their top executives fled Singapore.

Penalty Sentence Knocking at the Door

A Bloomberg report recently reported that Zhu gave his affidavit personally in Thailand several weeks back. He stated that he was concerned about the “potentially draconian consequences of the Liquidators exercising their wide powers.” This executive fears that he and other managers will be arrested.

A court in British Virgin Islands appointed Teneo as an advisory firm to liquidate 3AC’s assets. Teneo strongly disagreed with Zhu’s view that their lawyers had exceeded their authority.

“We remain optimistic, that such parties will provide full records and all pertinent information to enable us fully discharge our responsibilities in the interest of the creditors of 3AC,” the company statement said.

Another group of lawyers accused Su Zhu & Kyle Davies of not cooperating despite the serious harm they have caused users. They also claimed that the duo had fled Singapore and that their whereabouts remain unknown.

“The foreign representatives believe and understand that the debtor may have had some operations in Singapore. However, Mr. Davies’ and Mr. Zhu are not currently located. Rumours suggest that they have fled Singapore.

3AC’s collapse was a major blow to the sector as some of its top-profile creditors included Voyager Digital and BlockchainCom. Sources have estimated that the hedge fund controls approximately $3.5 billion to 27 companies.

How Zhu & Davies Explained The Crash

Zhu, Davies and others finally spoke out about the company’s problems and why it was in decline after being silent for some time. The downtrend was caused by a combination of one-way wagers and accommodative loans that both collapsed simultaneously, which they argued later was exacerbated by the crypto market crash.

Zhu believes that the “nail on the coffin” of Three Arrows Capital was the time bitcoin plummeted from more than $30,000 to less than $20,000. Contrary to what is being claimed, Zhu believes that he and his partner tried everything to avoid the disaster.

“People may call us stupid. They may call us stupid or delusional. It’s possible. Maybe. They’ll, however, go after me if I run out of money in the last period when I actually put more of my personal funds back.”

Zhu didn’t confirm the rumors that he was currently living in Dubai. He assured Davies that he and Davies work in constant collaboration with Singaporean authorities.

CryptoPotato’s first post, 3AC co-founder Concerned about Facing Prison Time (Report), appeared first on CryptoPotato.

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Marla Brooks

Marla Brooks – Financial Analysis My name is Marla Brooks, and I am the mainstream behind the”observednews.com”  for the powerful and most delicate insights into the latest activities in the financial analysis category. I started my journey as an independent financial consultant. I had approximately nine years of experience in this field. I am free soul so; my passion for exploring the world has taken me to the nations across the globe and given me the chance to report for a portion of the best news associations. Currently, I am a full-time editor as experienced in finance and started to use my abilities.

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