Three Arrows Capital creditor wants court to order summons of two founders - SEC and CFTC recognize 3AC investigation

The creditors of the investment fund Three Arrows Capital are asking the court to summon founders Zhu Su and Kyle Davies.

The asset liquidation unit of the investment fund Three Arrows Capital (3AC) is petitioning the US court to issue a summons to the two founders Zhu Su and Kyle Davies for not cooperating in the process of handling the bankruptcy of the company. this investment fund.

As reported by FoxCryptoNews, Three Arrows Capital is a well-known crypto fund, but suffered heavy losses after the collapse of LUNA-UST in May, followed by massive asset liquidation when the market crashed. continued adjustment in June. This fund was found to have borrowed uncollateralized assets from a series of other entities, creating a ripple effect that spread to Voyager, Finblox, Genesis Trading, Babel Finance, DeFiance Capital, Blockchain. com, Deribit, Kyber Network,…

According to bankruptcy documents published in July, creditors are seeking up to $3.6 billion in damages from 3AC.

The asset liquidation unit wants to summon Mr. Zhu Su and Kyle Davies to the court to provide more information and testify to have a more comprehensive picture of the fund's situation before bankruptcy.

The creditor's representative stated:

“The founders, through advice from their attorneys, insisted that the little information they provided to the creditor's agent, including an exhaustive list of assets and how to proceed, was not enough. access to them, are all documents in their possession.”

The creditor wants the court to order 3AC to provide documents "indicating the existence, location and method of accessing and taking control of the property", including account information, seed phrase and private key.

Previously, this unit was entangled in a controversy with the two founders when they said they deliberately did not cooperate and dodged the creditor's question. Mr. Zhu Su later denied the above allegations, revealing the information that StarkWare was about to issue tokens.

Also on the evening of October 17, Bloomberg reported that US regulators were looking to take a closer look at the Three Arrows Capital incident. Specifically, both the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) said that 3AC showed signs of misleading investors about the company's situation and did not register to operate on the market. authorities.


FoxCryptoNews summary

Oct 18, 2022

0 0