The founders of Three Arrows Capital (3AC) are reportedly worried about facing jail time after a dispute with court-appointed liquidators.
Three Arrows Capital CEO, I hope they showed good faith
It’s worth noting that earlier this week, Three Arrows Capital’s liquidators won a crucial court ruling in Singapore, which gave them the ability to probe the defunct crypto hedge fund’s local assets.
According to a new report from Bloomberg, Three Arrows Capital CEO Su Zhu provided an affidavit implicating Teneo, the liquidation company in charge of 3AC’s assets, of misleading the Singapore High Court about the hedge fund’s structure. In action, the liquidators allege that Zhu and his co-founder Kyle Davies are not cooperating with their efforts. The report says the liquidators accused the duo of offering “rather selective and piecemeal disclosures” about 3AC’s assets.
In other words, Zhu singled out the court-appointed liquidators for providing misleading and inaccurate information in their motions. In its affidavit, Zhu claims Teneo “had not provided a totally total or accurate variation of opportunities” and “incorrect and misleading representations” of the company’s operations, timelines and relationship with the Singapore court, the report said.
Unfortunately, our good faith in cooperating with the liquidators was met with bait and switch. I hope they showed good faith toward the StarkWare token warrants.
They declined to comment on the details, the liquidators submitted responses to Zhu’s claims to the Singapore court. Now, Zhu says he is concerned about the “exorbitant consequences” that could arise from Teneo’s alleged misstatements. Zhu, who had actually previously identified himself as the director of 3 Arrows Capital Pte Ltd ( TACPL), says the entity may not be able to fully comply with Teneo’s extensive demands.
Zhu says not being able to comply could have extreme repercussions, consisting of fines and jail time for being found in contempt.
TACPL left Singapore in July 2021, practically a year before 3AC went bankrupt.
Said Teneo, according to the report,
We remain optimistic that the [appropriate] parties will provide access to the completion records and all details to enable us to fully discharge our obligations in the interest of 3AC’s lenders.