United Arab Emirates’ Dubai is where the co-founders intend to relocate. They expressed regret at the demise of their cryptocurrency hedge fund.
A long-awaited declaration
The founders of the bankrupt cryptocurrency hedge fund Three Arrows Capital (3AC), Su Zhu and Kyle Davies, have now publicly discussed the failure of the fund. In an interview with Bloomberg that was published on Friday, they finally broke their more than one month long silence.
The co-founders referred to the market-leading cryptocurrency hedge fund’s demise as “regrettable.” The fund was situated in Singapore. Zhu and Davies, however, have denied accusations that they withdrew money from the fund before it collapsed. Due to its extensive exposure to the ecosystem, 3AC suffered a $200 million loss following the Terra-Luna disaster in May.
In addition, the recent collapse of the Bitcoin market cost the hedge fund company at least $400 million.
According to Zhu, 3AC’s downfall was caused by various leveraged trades it made in the hope that the bitcoin market would rebound. Leaders of 3AC declared that they were working with law enforcement and that they were keeping a low profile due to the death threats.
Voyager Digital, a cryptocurrency trader, recently disclosed that 3AC had defaulted on a $670 million loan. A $1.2 billion lawsuit was brought by Genesis Global Trading, another cryptocurrency broker, against the bankrupt business.
A move to Dubai?
The co-founders allegedly conducted the Bloomberg interview while speaking from an unidentified location. A lawyer who is thought to have taken part in the call stated that they were also traveling to Dubai, United Arab Emirates.
- Since we had planned to move the business to Dubai, we have to go there soon to assess whether we are moving there as originally planned or if the future holds something different , Zhu told Bloomberg.
A British Virgin Islands court ordered the liquidation of 3AC last month. Teneo Restructuring, a global consulting company, was tasked with overseeing the insolvency procedure, according to Finance Magnates. In all circumstances, Teneo Restructuring provides advice to businesses, creditors, and other financial stakeholders.
We don’t learn much more about the causes of 3AC’s bankruptcy from this most recent announcement by the investment fund’s executives. It once more brings attention to the company’s disastrous risk management, which caused its demise.
