Three Arrows Capital (3AC) founders Su Zhu and Kyle Davies were reportedly identified and detained by Dubai Police, UAE as they while boarding a private jet to Switzerland. Further details are yet to be revealed, according to CryptoWhale.
Teneo, the liquidation company appointed by the British Virgin Islands’ court, uploaded a 1,000-page document on Monday. The long read was taken down the same day, only to be echoed by those who were quick enough to save it.
The extensive court document disclosed an affidavit, allegedly by one ‘Robert Gardner’, who was assumed to be Kyle Davies himself. Su Zhu had staked over $1.4 billion in the offshore fund due to market turmoil brought about by the Terra (LUNA) and Terra (UST) catastrophes. Allegedly, Do Kwon’s Terra (LUNA) alone is accountable for $600 million of 3AC’s losses.
Davies demanded in the affidavit that Three Arrows Capital owes $65 million to his wife Chen Kaili Kelly, and also “confirmed” Su Zhu’s claim of $5 million. The team behind Three Arrows Capital is looking to demand an additional $25 million via ThreeAC Limited, the investment project manager of the fallen crypto privet fund.
Crypto expert and Founder of Crypto Pragmatist Jack Niewold issued a quick analysis of the documents on his Twitter profile. He claimed that Three Arrows Capital kept most of its investors in the dark about the “extent of the losses”.
The hedge fund’s biggest creditor was exposed to be Genesis, which is a subsidiary of Digital Currency Group. Three Arrows Capital reportedly indebted the firm around $2.3 billion, while the 1,000-page summer read details a total debt of $3.5 billion for Three Arrows Capital. The founders were forced to agree to participate in the emergency liquidation meeting by authorities.
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