3AC Co-Founders Finally Break Silence, Claims The Whole Situation Was “Regrettable”



The post 3AC Co-Founders Finally Break Silence, Claims The Whole Situation Was “Regrettable” appeared first on Coinpedia – Fintech & Cryptocurreny News Media| Crypto Guide

For the first time since filing for bankruptcy, the co-founders of the troubled hedge firm, Three Arrows Capital, have provided details regarding its premature downfall.

In an interview with Bloomberg, they broke their month-long silence.

The co-founders, Zhu and Davies, called the collapse “unfortunate” and rejected allegations of withdrawing money from the fund before its collapse.

In a Nutshell: Here Are The Highlights Of The Interview

  • Crippling Debt: It appears that the collapse of the Terra ecosystem served as the catalyst for Three Arrows, also known as 3AC, and caused repercussions in the cryptocurrency market. Amounts totaling $2.8 billion are allegedly still owed to investors by the bankrupt fund. A 1,157-page court document filed on Monday, with individual claims totaling more than $1 billion, showed the magnitude of the hedge fund’s debt after its collapse.
  • Location: The article further stated that although the founders declined to reveal their whereabouts, one of the lawyers on the call claimed that the United Arab Emirates (UAE) was their eventual destination
  • Future plans: Zhu claimed they must visit Dubai soon to determine whether or not their plans to relocate their company there will be profitable or if something else might be in store for them in the future.
  • Alleged Cause of the Downfall: Zhu also claimed that leveraged trades in anticipation of a positive rebound in the cryptocurrency market were to blame for the fund’s demise. He contrasted the collapse of 3AC to that of Celsius Network, a cryptocurrency lending company that stopped accepting withdrawals and sought bankruptcy protection after running out of cash to honor customer redemptions.
  • Terra: The Terra ecosystem and its token, LUNA, fell to zero in May, making one of 3AC’s most significant investments go up in flames. Despite making an effort to maintain a low profile, the pair says that they are working with the authorities.
  • The reason for ‘ghosting’: Due to people’s increased death threats, the 3AC executives stated that they are cooperating with law enforcement and have chosen to maintain a low profile till the situation is under control.