Summary:
- 3AC boss Su Zhu accused liquidators of misleading the court and authorities regarding Three Arrows entities and assets.
- Zhu voiced his concerns via an affidavit in Bangkok, Thailand on August 19.
- Notably, the 3AC co-founder was present in person for the event.
- The appearance came days after a Singapore court approved a key petition from lead liquidator Teneo.
Co-founder of beleaguered crypto hedge fund Three Arrows Capital, Su Zhu, was present in Thailand on Friday, August 19 to levy accusations against 3AC liquidators for providing courts and authorities with misleading information.
Zhu submitted an affidavit in the country’s capital of Bangkok a few days after advisory firm Teneo restructuring bagged a significant victory in 3AC’s liquidation process.
Teneo was appointed as the lead Three Arrows Capital liquidator by a British Virgin Islands court back on June 29. Less than a month later on July 15, Teneo petitioned a High Court in Singapore. The firm asked authorities to recognize the BVI court order.
Around the same time, Zhu also accused liquidators of not cooperating with the firm amid probes into the whereabouts of both he and co-founder Kyle Davies.
A successful petition meant that Teneo would be allowed to access financial records and assess 3AC assets domiciled in Singapore on behalf of creditors. Liquidators also hinted at plans to investigate if Su Zhu and Kyle Davies contributed to 3AC’s tumble.
Three Arrows Capital’s Su Zhu Concerned About Jail Time
Su Zhu appeared in Bangkok weeks later to accuse liquidators of misleading the court. According to the notarized document viewed by Bloomberg, Teneo’s petition was built around “rather selective and piecemeal disclosures” regarding 3AC’s assets and company structure.
Zhu argued that Teneo’s petition focused on a Three Arrows Capital entity based in Singapore that no longer managed the firms’ funds as of September 2021 and may not have the authority to comply with the court’s demands.
The co-founder also stressed that “the potentially draconian consequences arising from the Liquidators” could result in jail time for him and other employees if the petition is granted.
Despite Zhu’s Bangkok appearance, the High Court in Singapore approved Teneo’s request on August 24 and allowed the firm to begin assessing 3AC’s local assets as part of the liquidation process.