Three Arrows Capital Liquidators Demand $1.3B from Bankrupt VC Fund’s Co-Founders - Decrypt
The co-founders of Three Arrows Capital, Su Zhu and Kyle Davies, recently formed new VC fund 3AC Ventures....
- Teneo, the court-appointed liquidators of bankrupt venture fund Three Arrows Capital (3AC), are claiming $1.3 billion from its co-founders, Su Zhu and Kyle Davies.
- The claim is to cover losses incurred in the last couple of months before the fund's collapse in July 2022 due to significant leverage.
- The liquidators allege that Zhu and Davies continued taking on leverage despite the firm being already insolvent, which increased the total losses.
- The liquidators had previously secured some assets of the company, but they represent only a small portion of the $3.5 billion hole in the company's balance sheet.
- The latest claim aims to seize assets owned by Zhu and Davies personally.
- 3AC's founders attributed the hedge fund's collapse to over-exposure to Terra, staked Ethereum, and Grayscale's Bitcoin trust.
- Zhu and Davies attempted a comeback with a new venture capital fund called 3AC Ventures, investing in projects including bankruptcy claim exchange Open Exchange (OPNX).
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The sentiment of the article is negative, as it discusses the bankruptcy and claims against the co-founders of Three Arrows Capital.
You May Ask
How much are the liquidators claiming from the co-founders of Three Arrows Capital?What is the reason behind the fund's collapse?What assets did the liquidators previously secure?What is the total hole in the company's balance sheet?What new venture did Zhu and Davies attempt after the collapse of Three Arrows Capital?