Zhu Su, the co-founder of Three Arrows Capital or 3AC, finally reappeared on Twitter after a month-long break that spurred intense speculation on his whereabouts.
In the tweet, Zu spoke out against court paper filings accusing him and co-founder Kyle Davies of failing to cooperate with the liquidators.
The screenshots contained emails addressed to Russell Crumpler, senior director of the advisory firm Tenio that has been tasked to oversee the hedge fund’s liquidation.
The mail which appeared to come from 3AC attorneys, Advocatus Law LLPAs countered the allegation by saying that the liquidators trap the duo into discussions without sending a prior notice.
“It has come to our client’s attention that you have made an application in the United States of America, alleging that they have not been cooperating with you in any meaningful way, and detailing some of the discussions, and the manner in which we had them, on 8 July 2022.”
“It now appears clear why your Singapore solicitors were keen to ask if the discussions were on a ‘without prejudice basis. It was to use the discussions in Court filings without notice to our clients.” wrote Christopher Anand Daniel, managing partner of Advocatus.
3AC’s lawyers also claimed that the founders and their families “have received threats of physical violence.”
3AC On Liquidators’ Flip-Flop Of StarkWare Token
The second screenshot deals with the firm’s relationship with the Israeli crypto startup StarkWare of which Zhu and Kyle are both investors and stakeholders.
The legal counsel expressed concern over the liquidators’ failure to exercise StarkWare’s token purchase offer that had been agreed upon causing “the company to lose substantial value”.
“Our clients, as you know, besides being former directors of the company, are also investors, and shareholders of the company. One of our clients, Mr. Zhu Su, is also a creditor,” Daniel wrote.
“In these capacities, they are extremely concerned by the Liquidators’ failure to exercise StarkWare’s token purchase offer [“StarkWare Exercise”], a fact that was confirmed by you in the call on 8 July 2022.”
Earlier this month, the Singapore-based hedge fund filed for Chapter 15 bankruptcy to protect against assets seizure from creditors in the US.
Russell Crumpler and Christopher Farmer of Teneo, previously claimed they were unable to get in touch with Zhu and Davies leading to rumors that the two were on the run from authorities.
As noted by Reuters, the court scheduled an emergency hearing on Tuesday, July 12th to address 3AC’s crisis. Now as per the 3AC mail, the co-founders won’t be attending that call.
