Su Zhu, co-founding father of Singapore-based crypto investment capital firm Three Arrows Capital (3AC), came back to Twitter after nearly per month of inactivity. In another cryptic tweet, he blamed liquidators for baiting them regarding StarkWare tokens.
The tweet with attached mail from a lawyer claimed that Starkware equity were built with a token warrant that expired on This summer 5 which the liquidator didn’t exercise the warrant, inducing the lack of Starkware tokens. Zhu blamed liquidators because of not while using Starkware tokens and claimed they baited the firm to make use of information in the court.
The cryptic tweet in the co-founder comes days after 3AC filed for any Chapter 15 personal bankruptcy inside a New You are able to court after it unsuccessful to satisfy several margin calls from the lenders. The rumors concerning the firm’s insolvency started in June and later, an english Virgin Islands court-purchased liquidation of 3AC funds.
TLDR (thanks @0x_Kun) :
• 3AC was presented with to liquidator
• Liquidator did not exercise Starkware token warrants [which expired useless]
• Zhu Su believes the liquidator baited them for information to make use of in the courtAlpha produced from this publish:
Starkware token confirmed. https://t.co/zvQGDdVqZk— CC2 (@CC2Ventures) This summer 12, 2022
3AC’s trouble started using the bear market turmoil in May which was fueled through the Terra (LUNA) — now known as Terra Classic (LUNC) — ecosystem crash. Later, it had been says the crypto hedge fund had accrued $559 million price of locked LUNA, which depreciated to $650 following the crash. The firm also held a substantial position in Solana (SOL) and Avalanche (AVAX), which fell to new lows within the same time period.
Using the crypto market crash, most cryptocurrencies lost nearly 70% of the valuation in the top. 3AC also held significant positions in synthetic assets for example Grayscale Bitcoin Trust (GBTC) and Lido’s Staked ETH (stETH). Then when the costs of top cryptocurrencies dipped to some four-year low, it brought to a number of liquidations for that troubled crypto hedge funds. It’s been believed that 3AC accrued nearly $400 million in liquidation across multiple platforms.
Related: Voyager Digital issues notice of default to 3 Arrows Capital
The apparent insolvency of 3AC has affected lenders overall with Voyager declaring personal bankruptcy a week ago following the hedge fund defaulted on the $500 million loan. BlockFi also battled using its business following the crypto hedge fund defaulted on the $1 billion loan.
The current tweet in the 3AC co-founder comes among rumors concerning the founders from the crypto hedge fund going missing and attracted an outrageous reaction in the community. Many asked his location while some mocked him for expecting “good faith” from liquidators after losing million of investors’ funds. One user authored:
“Zhu really right here speaking about “good faith” lmao”
Another user known as out Zhu for enjoying the victim card and authored:
“This is a nice standard “spin” for that architects of monetary destruction once things hit the legal stage. Zhusu is playing the “victim” card in the courtroom of public opinion. Disgusting behavior, but to become expected at this time.”
