The consulting agency Teneo claims that the Three Arrows Capital fund, despite problems with the return of capital to investors, continued to trade cryptocurrencies.
Restructuring agency Three Arrows Capital (TAC) has released a court filing by crisis manager Russell Crumpler alleging that fund co-founders Su Zhu and Kyle Davies made the down payment on the yacht. worth $50 million.
The yacht was to be delivered to Italy within two months of the last payment. The document claims that Davis wanted the vessel to be “larger than any yacht owned by even the wealthiest Singaporean billionaires.”
It is assumed that the co-founders made the payment with borrowed funds, ignoring the attempts of creditors to get in touch. The document says that Zhu and his wife have purchased two Singaporean VIP bungalows for between $28.5 million and $48.8 million over the past two years.
Financial documents supporting the acquisition were provided as evidence that the co-founders used the company’s assets for personal purchases. The founders of a clearly insolvent company should not be allowed to dispose of what could be its assets,” the liquidators assure.
Teneo lawyers argue that Three Arrows Capital, despite the default, continued to trade cryptocurrencies instead of responding to the margin requirements of creditors. Experts suspect that on June 14, the fund transferred $31 million in USDC stablecoins and $900,000 to Tai Ping Shan, a company located in the Cayman Islands and owned by a partner of the co-founders named Kelly Kaili Chen.
TAC owes $3.5 billion to approximately 27 crypto companies. The largest creditor is crypto brokerage Genesis, which lent the fund $2.3 billion. After Three Arrows Capital failed to meet its obligations, Genesis sold the collateral and insured its losses.
Recently, a New York federal court froze the remaining assets of cryptocurrency hedge fund Three Arrows Capital after the company filed for emergency bankruptcy filing.
