The founders of the bankrupt enterprises, according to liquidators for cryptocurrency hedge fund Three Arrows Capital (3AC), are not assisting in the recovery of assets. According to liquidators, the corporation is unable to pay its creditors back because of these refusals.
Adam Goldberg, an attorney for the liquidators, alleged during a bankruptcy court that the founders of 3AC, Kyle Davies and Su Zhu, were more concerned with repairing their reputation than they were with helping the creditors of their own company recover assets.
According to Goldberg It’s intriguing, to say the least, that this theory that FTX was responsible for this debtor’s failure surfaced only after FTX itself experienced a spectacular collapse.
Goldberg was making reference to an interview Davies gave recently in which he accused FTX and its associated trading platform Alameda Research of “hunting our holdings,” which caused both the crash of Luna and the collapse of 3AC. In the interview, Davies also disclosed that he was assisting the fund’s liquidators.
In addition, Goldberg disclosed during the hearing that before the liquidators had access, someone had broken into locked 3AC offices and stolen hard drives. Investigators revealed that the founders purchased the superyacht Much Wow with funds from 3AC.
Additionally, according to Goldberg, the liquidators are attempting to recover the $30 million they spent on the yacht and will also seek recovery measures in the future.
Nevertheless, 3AC liquidators have recovered part of the creditors’ assets, amounting to $35 million in USD and various crypto tokens, according to Liquidator Russell Crumpler, who testified in court. Recovery attempts are still ongoing.
Crumpler continued by saying that 3AC has regained control over accounts that included more than 60 distinct kinds of cryptocurrency tokens. The founders’ current locations in the UAE and Indonesia were disclosed by 3AC in a court document.