Twitter Return: A Cryptic Message
After nearly a month of Twitter silence, Zhu Su, the co-founder of the infamous crypto venture capital firm Three Arrows Capital (3AC), has resurfaced with a tweet that’s more cryptic than an old magician’s trick. In this digital rabbit hole, he pointed fingers at liquidators, claiming they played the bait-and-switch game regarding StarkWare tokens.
The StarkWare Saga
In his tweet, Zhu referenced an email from legal counsel, detailing how a token warrant for StarkWare equity took a nosedive on July 5 – it expired unexercised. Imagine having a coupon for your favorite sandwich shop that expires before you even make it through the door! Zhu pinpoints his frustrations on the liquidators, alleging that they dangled information in front of them to exploit in court. Nothing screams “trustworthy” quite like a mysterious email from a liquidator, right?
The Fallout: 3AC’s Bankruptcy Blues
Days before Zhu’s tweet storm, 3AC took the plunge and filed for Chapter 15 bankruptcy in New York, following a nasty bout of missed margin calls with its lenders. The firm had become a poster child for crypto woes after facing a liquidity crisis that dates back to the unsettling June rumors of insolvency. Subsequently, the British Virgin Islands court stepped in like a bouncer at a hot nightclub, ordering liquidation of 3AC’s funds.
Trouble in the Crypto Playground
Let’s rewind to May, when 3AC’s troubles escalated thanks to the turbulence kickstarted by the Terra (LUNA) crash. Picture this: a hedge fund holding a whopping $559 million in LUNA, only for it to plummet to a mere $650. Yikes! The prolonged downturn turned many crypto positions sour: 3AC also held heavy stakes in Solana (SOL) and Avalanche (AVAX), both splashed paint all over the floor after their values dipped.
Ripple Effects: A Cryptic Collapse
The fallout from 3AC’s financial fiasco has left many lenders scrambling to stay afloat. Recently, Voyager Digital issued a notice of default to 3AC after a hefty $500 million loan went belly-up. BlockFi’s fortunes declined as well in the wake of a $1 billion loan default by the crypto hedge fund. If the idiom “misery loves company” holds true, then 3AC is not just experiencing misery; it’s hosting a full-blown party.
Community Reactions: Where is Zhu?
Zhu’s tweet didn’t just open the floodgates of speculation; it triggered a tsunami of reactions from the crypto community. Many have questioned his whereabouts, and while others couldn’t resist poking fun, noting how he’s advocating for “good faith” from liquidators, despite the visible smokescreen of financial chaos left in 3AC’s wake. One user quipped, “Zhu really over here talking about ‘good faith’ lmao.” Another had a sharp take, arguing, “This is a pretty standard ‘spin’ for the architects of financial destruction once things hit the legal stage.”
