A Judge’s Call for Accountability
A federal judge has turned up the heat in the ongoing bankruptcy saga of Three Arrows Capital (3AC) by signing subpoenas targeting its co-founders, Su Zhu and Kyle Davies. These subpoenas are no joke—requiring the founders to surrender all recorded information related to 3AC’s assets and financial affairs. This includes everything from documents to seed phrases, because who doesn’t love a good fishing expedition?
The Rise and Fall of Three Arrows Capital
At its peak, 3AC was a hedge fund sensation boasting a whopping $10 billion in capital. However, the party ended on July 1 when the firm filed for Chapter 15 bankruptcy, largely due to excessive leverage and the catastrophic collapse of notable cryptocurrencies like Terra Luna. It’s like ordering too many appetizers at a restaurant, only to realize you can’t finish your entré.
The Professionals Take Charge
Now, the liquidators from an advisory firm known as Teneo are on the hunt. It’s a bit like a scavenger hunt, but instead of searching for Easter eggs, they are sifting through the remains of a multi-billion-dollar hedge fund. Recently, the court order has expanded the net, designating several individuals—including lawyers and directors—along with related companies as “discovery targets.” Talk about a game of “who’s who” in financial fiascos!
The Mysterious Disappearances
As of now, there is little information about the whereabouts of Zhu and Davies. Rumor has it Zhu is living it up in Dubai while Davies is basking in the sun on the island of Bali. While both are active on social media, you have to wonder if their beach selfies come with a side of regret for how things turned out.
Whistleblower Revelations about Terra
In the same vein of chaos, Terra whistleblower FatMan has recently stirred the pot on Twitter, claiming that Terraform Labs (TFL) played a bigger role in the depegging of TerraUSD than previously believed. FatMan’s recent revelations allege that TFL dumped a staggering $450 million worth of UST right before the disaster struck. It’s not the first time a failed experience has been blamed on the uninvited presence of bad decisions!
Was It Really an Attack?
Some are skeptical about FatMan’s accusations, arguing that TFL’s moves were known in advance and aimed at bolstering their liquidity pools. Blockchain detective skills over here! One Twitter user pointed out that the withdrawals were part of a strategy to swap UST for Bitcoin reserves. I guess that strategy didn’t quite pan out.
