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Three Arrow's Su Zhu Puts Singapore Luxury Home for Sale

Su Zhu, the co-founder and Chief Executive Officer of embattled Three Arrows Capital (3AC) has put his Singapore mansion for sale.

According to a report by Bloomberg, the mansion, categorized as a Good-Class Bungalow, one of the most luxurious homes for high networth individuals in Singapore was listed for $35 million, equivalent to the amount it was acquired for.

The listing of the house comes as the liquidation of Three Arrows Capital is underway as ordered by a court in the British Virgin Islands. While there is no confirmation that the proposed sale of the good-class bungalow has any connection to the distressed company, chances are that the sum could be deployed to the firm whose finances are now being strained going to the ongoing crypto market onslaught.

According to the Bloomberg report, Su Zhu and his wife, Tao Yaqiong Evelyn have two of these good-class bungalows. While the first, located at Balmoral Road was purchased under a Trust last year, the second, located at Dalvey road was purchased under Tao’s name.

The distress that led Su Zhu to put up his mansion for sale is an encompassing one as 3AC which ranks as one of the biggest crypto hedge funds with over $10 billion in Assets Under Management (AUM) as of May was unable to pay its creditors.

As reported earlier by Blockchain.News, Voyager Capital issued a notice of default to the embattled company last month for a loan worth about $650 million. Other notable platforms including FTX, and BlockFi have also liquidated the hedge fund founded alongside Kyle Davies.

It is yet unclear how 3AC’s creditors will be paid, but sources close to the liquidation process pointed out that Teneo Restructuring, based in the British Virgin Islands is responsible for the liquidation, and the firm is in the stage of valuing the company’s assets. A website will be announced in a short while for creditors to make their claims, the sources say.

3AC Co-Founder Reappears, Blames Liquidators for 'Baiting'

Su Zhu, the co-founder of Three Arrows Capital (3AC), has reappeared guns blazing and faulted liquidators’ accusations that he refused to cooperate with them. Zhu had disappeared following the hedge fund firm’s implication with liquidity fears on 15th June.

On Tuesday, Zhu twitted addressing speculations regarding his and 3AC co-founder Kyle Davies’ whereabouts. The co-founder tweeted: “Sadly, our good faith to cooperate with liquidators was met with baiting.”

Zhu posted screenshots of an email sent from his legal counsel to lawyers of Three Arrows liquidators. The email showed dissatisfaction concerning how court filings have proceeded and how liquidators have so far conducted their activities. The email alleged that liquidators are ‘baiting’ Zhu and co-founder Kyle Davies and ignoring their attempts to work with them in good faith.

Meanwhile, liquidators of 3AC are permitted to subpoena two Co-founders, Bloomberg reported Tuesday. The report said a federal bankruptcy judge granted the emergency motion in a hearing Tuesday. Liquidators at advisory firm Teneo are seeking to investigate and preserve the assets of the bankrupt hedge fund, and plan to contact as many as 24 entities connected to Three Arrows for more information.

In a court filing on Friday, liquidators of Three Arrows Capital Russell Crumpler and Christopher Farmer revealed that the physical whereabouts of 3AC co-founders are currently unknown and mentioned that the co-founders have not yet started to cooperate with them in any way.

However, Three Arrows’ legal counsel, Christopher Daniel of Singapore’s Advocatus Law, has appeared to defend the whereabouts of these clients, stating that his clients had faced threats of physical violence.

In the screenshot posted by Zhu, Daniel said Three Arrows has not been given copies of the court documents filed in the US court on Friday.

Daniel further mentioned that the hedge fund had compiled a list of assets and sent it to the liquidators. He said that the list was requested by the liquidators who intend to ask the U.S. court to summon Zhu and Davies to provide the document.

Investors Wealth Wipe Off

Three Arrows Capital managed approximate $10 billion in assets as recently as March, making it one of the largest crypto hedge funds in the world.

Now, 3AC is headed to bankruptcy in court after a crash of crypto prices wiped out the company’s assets and left it unable to repay its lenders.

3AC had a wide list of counterparties (firms that had put their funds wrapped up in the hedge fund’s ability to at least stay afloat).

With the current market plunge, investors with concentrated bets on 3AC and other similar firms suffered severe consequences.

Crypto brokerage Voyager Digital recently filed for Chapter 11 bankruptcy protection after 3AC defaulted to repay the $670 million it had borrowed from the firm.

Crypto exchange Blockchain.com is likely to lose as much as $270 million in loans given to 3AC. Crypto firms including Genesis Capital, FTX, BitMEX, and BlockFi are also poised to lose massive millions of dollars issued to 3AC. Three Arrows Capital is also facing inquiries from Singapore’s Monetary Authority (MAS).

Su Zhu Amongst Creditors Files $5m Claim against His Own Firm: Sources

Su Zhu, the co-founder and CEO of bankrupt Three Arrows Capital (3AC), is reportedly amongst the creditors that filed claims against the embattled crypto hedge fund.

This news was shared by a Twitter user named ‘Soldman Gachs’ who also claimed he was one of the creditors of Three Arrows Capital.

“I’ve just seen the list of creditors to #3AC and noticed that @zhusu has filed a claim for $5 million. While being on the run, he has somehow found the time to diligently and ruthlessly fill out forms to pursue a claim against his own Fund,” he said in a tweet.

While the news that Su Zhu filed a claim against his own company may sound bizarre, Soldman Gachs also revealed that ThreeAC Limited, the investment manager of 3AC, also filed a $25 million claim against Three Arrows Capital. The creditor also shared the list of other creditors of the company, citing the likes of Digital Currency Group (DCG), Algorand, CoinList, and the MoonBeamNetwork amongst others.

Teneo Restructuring published the list of the creditors, which is made public for the first time since it was appointed by a court in the British Virgin Islands (BVI) to handle 3AC’s liquidation process. These creditors were reportedly expected to have a meeting on Monday, July 18.

The total value of all claims against Three Arrows Capital came in at $2.8 million, and per Soldman Gachs, some of these creditors filed for just $1 with the right.

It is highly unlikely that 3AC has enough collateral and assets to meet up with all of these claims, a harsh reality that might make some creditors lose their funds. The liquidation process is a cycle in the current crypto ecosystem, and one of 3AC’s creditors, Celsius Network, has also filed for bankruptcy in the US recently.

Su Zhu Worried About Jail Term Over Liquidators Class Action Settlement – Report

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Su Zhu, a co-founder of Three Arrows Capital (3AC), a Singapore-based cryptocurrency hedge fund firm, delivered an affidavit in person in Bangkok, Thailand, on August 19, as reported by Bloomberg on Friday 26th August.

In the affidavit, Zhu accused the firm’s liquidators that they used misleading and inaccurate information in their case associated with Three Arrows and its assets in the High Court of Singapore.

In June, a court in the British Virgin Islands appointed consultancy firm Teneo to liquidate Three Arrows’ assets.

Last month, Three Arrows creditors got an emergency hearing in court where the fund’s liquidators accused the two Three Arrows Capital founders (Su Zhu and Kyle Davies) of failing to cooperate in the liquidation process.

On Monday this week, the Singapore High Court approved requests by advisory firm Teneo to begin the liquidation order in the country. In the court, the liquidators said Zhu and Davies have provided “rather selective and piecemeal disclosures” about the fund’s assets.

In the affidavit, Zhu hit back and accused the liquidators of presenting “inaccurate and misleading” information about the operations, relationships, and timelines associated with Three Arrows Capital and its related entities in their petitions to the Singapore court.

In the affidavit, Zhu identified himself as a director of Three Arrows Capital Pte Ltd. He further said the entity first became a registered fund management firm in Singapore in August 2013 and was eventually licensed on July 31, 2021.

Zhu also described two feeder funds: Three Arrows Fund Ltd registered in the British Virgin Islands, and Three Arrows Fund LP registered in the US state of Delaware. Zhu stated that these entities fed into a master fund (Three Arrows Capital Pte Ltd) named in the affidavit as “the Company.”

The specifics of these representations matter to Zhu as he said the fund’s Singapore entity, Three Arrows Capital Pte Ltd, may not be able to fully comply with the liquidators’ broad demands for information.

In the affidavit, Zhu expressed his fears of “potentially draconian consequences” if Teneo is allowed to exercise its powers to liquidate assets from Three Arrows Capital Pte Ltd.

He also claimed that he and other representatives associated with Three Arrows Capital Pte Ltd could face fines or jail.

Why Did the Firm Collapse?

Three Arrows Capital has been lined up for liquidation several weeks after it was accused of defaulting on multimillion-dollar loans to the crypto firms such as Genesis Trading, Voyager Digital, Blockchain.com, among others.

The problem with the crypto hedge fund firm first started when the market crashed in May. The firm had used borrowed funds to bet big on a number of troubling cryptocurrency projects, including LUNA Terra stablecoin, which crashed to zero when it lost its peg in May, as well as, Axie Infinity, a “play to earn” game that lost almost $700m (£577) to a hack from North Korea last year.

Last month, on July 4th, Three Arrows Capital filed for Chapter 15 bankruptcy in a federal bankruptcy court in the Southern District of New York in hopes to protect its U.S. assets after a court in the British Virgin Islands ordered the company into liquidation on June 30th.

After Three Arrows collapsed during the market crash, Zhu and Davies went silent and they were widely thought to be on the run. In the past, they were accused of avoiding questions from creditors and liquidators.

Three Arrows' OPNX Announces Shutdown

OPNX, a cryptocurrency exchange and bankruptcy claims platform co-founded by the individuals behind the failed hedge fund Three Arrows Capital (3AC), has announced it will cease operations and shut down by February 14, 2024. The announcement comes after the platform advised its users to settle their positions by February 7 and ensure all funds are withdrawn by February 14, post which the withdrawal functionality will be disabled. This decision marks the end of OPNX’s operations, which aimed to facilitate the trading of creditor claims of bankrupt crypto companies.

Just one week before the annoucement, Su Zhu, co-founder of collapsed Three Arrows Capital, said they will continue to promote exchange OPNX in Hong Kong according to SCMP. OPNX registered an office in Hong Kong’s central business district in May last year, with former CoinFlex CEO Mark Lamb listed as a director. Hong Kong’s new virtual asset regulatory rules has taken effect in June 2023. As a financial center, Hong Kong now welcome regulated crypto exchanges.

The closure of OPNX is rooted in a series of regulatory challenges and financial penalties, which significantly impacted its operational capacity and financial stability. Despite efforts to navigate these issues, including securing a Virtual Asset Service Provider (VASP) license in Lithuania, OPNX faced setbacks due to its association with controversial figures and heavy penalties from regulatory authorities, amounting to substantial financial burdens. Notably, the platform’s ties to Su Zhu and Kyle Davies, co-founders of Three Arrows Capital, have particularly cast a shadow over its operations, attracting increased scrutiny and complicating its regulatory landscape.

The platform’s user base is strongly advised to adhere to the communicated deadlines for settling positions and withdrawing funds to avoid potential losses. This structured closure process highlights OPNX’s commitment to ensuring a secure and orderly exit for its users amid its shutdown. The demise of OPNX underscores the volatile nature of the crypto market and the critical importance of regulatory compliance and operational transparency for platforms operating within this space.

For the broader cryptocurrency industry, the closure of OPNX serves as a poignant reminder of the intricate challenges and regulatory pressures platforms can face. It also underscores the need for robust structures to support the growth and sustainability of the digital finance ecosystem.