According to a recent report, in his affidavit, Su Zhu, co-founder of bankrupt crypto hedge fund, Three Arrows Capital, expressed worries about potential jail time. Zhu delivered his affidavit in Thailand earlier this month, noting his concerns and sharing some other thoughts.
Zhu Concerned a Prison Sentence Might Be on the Way
Earlier this year, 3AC was caught in the crossfire of the Terra crash leading the firm to a messy demise of its own. In late June, a court in the British Virgin Islands ordered the liquidation of the crypto hedge fund. The firm filed for bankruptcy, however, following this several industry players with ties to 3AC began to spiral as well.
With this in view, Zhu reportedly worries that he along with partner Kyle Davies may face severe legal consequences. Zhu believes there is a strong possibility that they will be incarcerated or receive significant fines. According to the Singaporean, this could be punishment for their roles as leaders in the company and might even extend to other executives.
Zhu describes his situation as:
the potentially draconian consequences arising from the Liquidators’ exercise of their wide powers.”
Interestingly, Zhu claims he and partner Kyle Davies did all they could to stop their company’s tumble. A few weeks ago, the co-founders spoke out, discussing the troubles their company had encountered. Zhu asserted that Bitcoin’s plunge from $30k-$20k had solidified the death spiral.
People might call us stupid. They might call us stupid or delusional. And, I’ll admit it. Maybe. But they’re going to, you know, say I ran out of money during the last period where I actually put back more of my personal money.”
Zhu and Davies Uncooperative
The 3AC co-founder also rolled out accusations against Teneo, the firm handling the crypto platform’s liquidation. He claimed the court-appointed advisory company had exceeded its authority. Zhu also alleged that they had misrepresented the structure of the hedge fund.
Teneo’s legal team refuted the claims in a company release saying,
We remain optimistic that such parties will provide access to complete records and all relevant information to enable us to discharge our responsibilities fully in the interests of the creditors of 3AC.”
Notably, a short while ago a set of lawyers alleged that Zhu and Davies had refused to cooperate with legal proceedings. The hedge fund founders had remained disagreeable despite the harm their platform brought to investors. Additionally, the lawyers speculated that the pair were no longer in Singapore, with little information on their locations.
However, Zhu has stated that he and Davies keep in close touch with the relevant Singaporean authorities.