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The Three Arrows Capital crypto hedge fund — which lost billions in one of the most spectacular collapses of a crypto hedge fund in history — continues to ignite controversy and anger creditors. The dust-up with liquidators is ongoing, with one of 3AC’s elusive co-founders even breaking his much-cherished silence to reclaim the narrative — in order to protect his money.


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Last week, 3AC co-founder Su Zhu showed up to a Thai court to present an affidavit declaring that liquidator Teneo “had not provided an entirely complete or accurate version of events” to the court in Singapore.

Earlier this month, liquidator Teneo was given permission by the court to take stock of 3AC’s assets, indicating that the court recognized an earlier liquidation order in the British Virgin Islands. As part of its liquidation proceedings, Teneo has been attempting to account for every asset under 3AC's control, in order to someday return a portion of the assets to frustrated creditors.

However, Zhu characterized Teneo's representation of 3AC in the courts as harmful and said the firm's statements might lead to “draconian consequences."

This summer, 3AC lost approximately $400 million to liquidation, as creditors moved quickly to attempt to recoup losses.

As the liquidation process accelerates, Teneo is fighting back with allegations that 3AC's co-founders are failing to cooperate and are only providing “rather selective and piecemeal disclosures” about the hedge fund's assets.

In July, Su Zhu tweeted that "good faith" efforts to share information with Teneo were thwarted by "baiting," and said that he and his co-founder had even offered spreadsheets with breakdowns of their assets. 

Teneo had previously attempted to physically locate the co-founders Kyle Davies and Zhu in order to better conduct its liquidation search, but the duo appear to still be on the lam and unreachable to liquidators. In June, the firm even traveled to Singapore to visit 3AC's office, but found closed doors and piled-up mail.

The liquidator, however, says it remains optimistic about being able to access important information related to 3AC's assets in order to complete liquidation proceedings.

Next month, the court in Singapore is expected to evaluate the liquidator's application.