The Drama Unfolds
The founders of Three Arrows Capital (3AC) are making waves on social media while their hedge fund sinks into the abyss of bankruptcy. Zhu Su and Kyle Davies are reportedly more engaged in tweeting sassy comments than in dealing with the reality of their company’s liquidation. According to the liquidators at their recent bankruptcy hearing, this social media frenzy may just be a smokescreen for their legal and financial troubles.
Legal Eagles Weigh In
During the bankruptcy hearing in New York, liquidators voiced their concern over Zhu and Davies’ priorities. “They’re tweeting like it’s 2016 during a crypto bull run, yet they can’t find the time to sit and discuss their assets with us?” quipped one inquisitive observer. Adam Goldberg, a lawyer representing the liquidators, pointed out that the founders have only engaged in limited discussions while gallivanting across the globe, making unexpected stops in Bali and the UAE.
The Irony of Reputation Rehab
Goldberg also highlighted the irony in their behavior—firing off tweets against FTX and conveniently redefining their narrative post-collapse. After the FTX fiasco, both Zhu and Davies have suddenly become crypto commentators—making appearances on major news networks to clarify that the collapse of their fund was thanks to “external factors.” You can almost hear the collective sighs from bankruptcy lawyers trying to rein them in.
Where in the World Are They?
The cliffhanger lurking at the end of this tale is almost like a poorly-scripted reality show. As of now, no one seems to know the exact whereabouts of the 3AC founders. Are they lounging on a tropical beach, or plotting their next tweet? The custody of 3AC’s assets remains uncertain, and the liquidators are scratching their heads over how to reel them in. Subpoenas might soon be knocking at their door!
The Bigger Picture
3AC’s Chapter 15 bankruptcy filed on July 1 is not just an isolated incident; it’s a reflection of the ongoing turmoil in the crypto market. At one point, this firm was a heavyweight with over $10 billion in assets under management. The ripple effects of its demise can be felt as other crypto firms stumble under similar pressures, with banks like Voyager Digital and BlockFi facing dire liquidity situations. The question remains: Are we witnessing a cosmic shift in crypto, or just the death throes of overindulgence?
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