Tag: Su Zhu

Su Zhu Worried About Jail Term Over Liquidators Class Action Settlement – Report

by Blockchain News

Su Zhu, a co-founder of Three Arrows Capital (3AC), a Singapore-based cryptocurrency hedge fund firm, delivered an affidavit in person in Bangkok, Thailand, on August 19, as reported by Bloomberg on Friday 26th August.

In the affidavit, Zhu accused the firm’s liquidators that they used misleading and inaccurate information in their case associated with Three Arrows and its assets in the High Court of Singapore.

In June, a court in the British Virgin Islands appointed consultancy firm Teneo to liquidate Three Arrows’ assets.

Last month, Three Arrows creditors got an emergency hearing in court where the fund’s liquidators accused the two Three Arrows Capital founders (Su Zhu and Kyle Davies) of failing to cooperate in the liquidation process.  

On Monday this week, the Singapore High Court approved requests by advisory firm Teneo to begin the liquidation order in the country. In the court, the liquidators said Zhu and Davies have provided “rather selective and piecemeal disclosures” about the fund’s assets.

In the affidavit, Zhu hit back and accused the liquidators of presenting “inaccurate and misleading” information about the operations, relationships, and timelines associated with Three Arrows Capital and its related entities in their petitions to the Singapore court.

In the affidavit, Zhu identified himself as a director of Three Arrows Capital Pte Ltd. He further said the entity first became a registered fund management firm in Singapore in August 2013 and was eventually licensed on July 31, 2021.

Zhu also described two feeder funds: Three Arrows Fund Ltd registered in the British Virgin Islands, and Three Arrows Fund LP registered in the US state of Delaware. Zhu stated that these entities fed into a master fund (Three Arrows Capital Pte Ltd) named in the affidavit as “the Company.”

The specifics of these representations matter to Zhu as he said the fund’s Singapore entity, Three Arrows Capital Pte Ltd, may not be able to fully comply with the liquidators’ broad demands for information. 

In the affidavit, Zhu expressed his fears of “potentially draconian consequences” if Teneo is allowed to exercise its powers to liquidate assets from Three Arrows Capital Pte Ltd.

He also claimed that he and other representatives associated with Three Arrows Capital Pte Ltd could face fines or jail.

Why Did the Firm Collapse?

Three Arrows Capital has been lined up for liquidation several weeks after it was accused of defaulting on multimillion-dollar loans to the crypto firms such as Genesis Trading, Voyager Digital, Blockchain.com, among others.

The problem with the crypto hedge fund firm first started when the market crashed in May. The firm had used borrowed funds to bet big on a number of troubling cryptocurrency projects, including LUNA Terra stablecoin, which crashed to zero when it lost its peg in May, as well as, Axie Infinity, a “play to earn” game that lost almost $700m (£577) to a hack from North Korea last year.

Last month, on July 4th, Three Arrows Capital filed for Chapter 15 bankruptcy in a federal bankruptcy court in the Southern District of New York in hopes to protect its U.S. assets after a court in the British Virgin Islands ordered the company into liquidation on June 30th.

After Three Arrows collapsed during the market crash, Zhu and Davies went silent and they were widely thought to be on the run. In the past, they were accused of avoiding questions from creditors and liquidators.

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Su Zhu Amongst Creditors Files $5m Claim against His Own Firm: Sources

by Blockchain News

Su Zhu, the co-founder and CEO of bankrupt Three Arrows Capital (3AC), is reportedly amongst the creditors that filed claims against the embattled crypto hedge fund.

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This news was shared by a Twitter user named ‘Soldman Gachs’ who also claimed he was one of the creditors of Three Arrows Capital.

“I’ve just seen the list of creditors to #3AC and noticed that @zhusu has filed a claim for $5 million. While being on the run, he has somehow found the time to diligently and ruthlessly fill out forms to pursue a claim against his own Fund,” he said in a tweet.

While the news that Su Zhu filed a claim against his own company may sound bizarre, Soldman Gachs also revealed that ThreeAC Limited, the investment manager of 3AC, also filed a $25 million claim against Three Arrows Capital. The creditor also shared the list of other creditors of the company, citing the likes of Digital Currency Group (DCG), Algorand, CoinList, and the MoonBeamNetwork amongst others.

Teneo Restructuring published the list of the creditors, which is made public for the first time since it was appointed by a court in the British Virgin Islands (BVI) to handle 3AC’s liquidation process. These creditors were reportedly expected to have a meeting on Monday, July 18.

The total value of all claims against Three Arrows Capital came in at $2.8 million, and per Soldman Gachs, some of these creditors filed for just $1 with the right.

It is highly unlikely that 3AC has enough collateral and assets to meet up with all of these claims, a harsh reality that might make some creditors lose their funds. The liquidation process is a cycle in the current crypto ecosystem, and one of 3AC’s creditors, Celsius Network, has also filed for bankruptcy in the US recently.

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3AC Co-Founder Breaks the Silence, Blaming Liquidators for ‘Baiting’

by Blockchain News

Su Zhu, Three Arrows Capital (3AC) co-founder, has broken his silence since the hedge fund firm was implicated with liquidity fears since 15th June. Zhu has faulted Liquidators’ accusations that he refused to cooperate with them.

In a court filing on Friday, liquidators of Three Arrows Capital Russell Crumpler and Christopher Farmer revealed that the physical whereabouts of 3AC co-founders, Zhu Su and Kyle Davies, are currently unknown and they further mentioned that the co-founders have not yet started to cooperate with them in a meaningful way.

On Tuesday, Zhu broke their silence via Twitter social media to address speculations regarding his and co-founder Kyle Davies’ whereabouts. The co-founder tweeted: “Sadly, our good faith to cooperate with liquidators was met with baiting.”

Zhu posted screenshots of an email sent from his legal counsel to lawyers of Three Arrows liquidators. The email showed dissatisfaction concerning how court filings have proceeded and how liquidators have so far conducted their activities. The email alleged that liquidators is ‘baiting’ Zhu and co-founder Kyle Davies and ignoring their attempts to work with them in good faith.

Meanwhile, liquidators of 3AC are permitted to subpoena two Co-founders, Bloomberg reported Tuesday. The report said a federal bankruptcy judge granted the emergency motion in a hearing Tuesday. Liquidators at advisory firm Teneo are seeking to investigate and preserve the assets of the bankrupt hedge fund, and plan to contact as many as 24 entities connected to Three Arrows for more information.

In legal documents filed on Friday last week, legal representatives for Three Arrows’ liquidators said that Zhu and Davies were not cooperating with the proceedings and their location is unknown.

However, Three Arrows’ legal counsel, Christopher Daniel of Singapore’s Advocatus Law, has appeared to defend the whereabouts of these clients, stating that his clients had faced threats of physical violence.

In the screenshot posted by Zhu, Daniel said Three Arrows has not been given copies of the court documents filed in the US court on Friday.

Daniel further mentioned that the hedge fund had compiled a list of assets and sent it to the liquidators. He said that the list was requested by the liquidators who intend to ask the U.S. court to summon Zhu and Davies to provide the document.

Investors Wealth Wipe Off

Three Arrows Capital managed approximate $10 billion in assets as recently as March, making it one of the largest crypto hedge funds in the world.

Now 3AC is headed to bankruptcy in court after a crash of crypto prices wiped out the company’s assets and left it unable to repay its lenders.

3AC had a wide list of counterparties (firms that had put their funds wrapped up in the hedge fund’s ability to at least stay afloat).

With the current market plunge, investors with concentrated bets on 3AC and other similar firms suffered severe consequences.

Crypto brokerage Voyager Digital recently filed for Chapter 11 bankruptcy protection after 3AC defaulted to repay $670 million it had borrowed from the firm.

Crypto exchange Blockchain.com is likely to lose as much as $270 million in loans given to 3AC. Crypto firms including Genesis Capital, FTX, BitMEX, and BlockFi are also poised to lose massive millions of dollars issued to 3AC. Three Arrows Capital is also facing inquiries from Singapore’s Monetary Authority (MAS).

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Three Arrow’s Su Zhu Puts Singapore Luxury Home for Sale

by Blockchain News

Su Zhu, the co-founder and Chief Executive Officer of embattled Three Arrows Capital (3AC) has put his Singapore mansion for sale.

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According to a report by Bloomberg, the mansion, categorized as a Good-Class Bungalow, one of the most luxurious homes for high networth individuals in Singapore was listed for $35 million, equivalent to the amount it was acquired for.

 

The listing of the house comes as the liquidation of Three Arrows Capital is underway as ordered by a court in the British Virgin Islands. While there is no confirmation that the proposed sale of the good-class bungalow has any connection to the distressed company, chances are that the sum could be deployed to the firm whose finances are now being strained going to the ongoing crypto market onslaught.

According to the Bloomberg report, Su Zhu and his wife, Tao Yaqiong Evelyn have two of these good-class bungalows. While the first, located at Balmoral Road was purchased under a Trust last year, the second, located at Dalvey road was purchased under Tao’s name.

The distress that led Su Zhu to put up his mansion for sale is an encompassing one as 3AC which ranks as one of the biggest crypto hedge funds with over $10 billion in Assets Under Management (AUM) as of May was unable to pay its creditors.

As reported earlier by Blockchain.News, Voyager Capital issued a notice of default to the embattled company last month for a loan worth about $650 million. Other notable platforms including FTX, and BlockFi have also liquidated the hedge fund founded alongside Kyle Davies.

 

It is yet unclear how 3AC’s creditors will be paid, but sources close to the liquidation process pointed out that Teneo Restructuring, based in the British Virgin Islands is responsible for the liquidation, and the firm is in the stage of valuing the company’s assets. A website will be announced in a short while for creditors to make their claims, the sources say.

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Cosmos, Elrond Rally as Crypto Market Stalls

by Cryptobriefing

Key Takeaways

  • Cosmos and Elrond have both posted double-digit gains today. Elrond’s EGLD posted a new all-time high.

  • Many other assets including Bitcoin and Ethereum have suffered from a decline over the last few days.

  • The Ethereum competitor Avalanche rallied over the weekend, fueling intense discussions between Su Zhu and various other key players in the space.


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Cosmos and Elrond are outperforming the rest of the market. 

Cosmos, Elrond Defy Market Dip 

While Bitcoin and Ethereum are down today, several other assets are rising fast. 

Cosmos and Elrond are among today’s biggest gainers, with ATOM and EGLD both up despite the overall market decline. According to data from CoinGecko, ATOM has risen 13.6% in the last 24 hours, while EGLD has put in a 15.7% gain. 


Elrond, one of several Layer 1 tokens in hot demand, hit an all-time high of $492.24 earlier today. Elrond markets itself as a highly-scalable blockchain platform for running smart contracts like those found on Ethereum. On Saturday, the Elrond ecosystem saw the launch of the Maiar decentralized exchange, which may explain the rally. It jumped to over $1 billion in total value locked on the day of launch, and Elrond noted that 2.93 million EGLD had been staked on Maiar earlier today. 

Cosmos, meanwhile, is often described as a Layer 0 network because it connects multiple blockchains within its ecosystem. Terra, Kava and THORChain all use the Cosmos SDK; their supported tokens can be exchanged between blockchains on Cosmos. Self-described as “the Internet of blockchains,” Cosmos is focusing on enabling cross-chain interoperability between various networks. 

Besides Cosmos and Elrond, the so-called “Metaverse tokens” SAND and MANA are also up today, continuing a rally that started when Mark Zuckerberg announced Facebook’s rebrand to Meta last month.



Layer 1 Debates 

While many leading assets have recorded losses over the last few days, some other lower cap coins have shown strength against the market dip. Avalanche, a competitor to Ethereum, saw its AVAX token record another new all-time high of $144.96 Sunday during a weekend of intense debates surrounding the Avalanche blockchain and Ethereum between some of the industry’s most prolific figures. Central to the drama was Three Arrows Capital CEO Su Zhu, who publicly shared optimistic price targets for Ethereum ahead of EIP-1559 launching but has more recently turned his focus to Avalanche (Three Arrows Capital announced it had co-led Avalanche’s $230 million raise in September). 

Zhu engaged in a heated discussion with Synthetix founder Kain Warwick, who posted a tweet noting that he had observed many crypto enthusiasts that had “sold out in pursuit of profit maximization.” Zhu later wrote that he had “abandoned Ethereum” and that Ethereum had “abandoned its users.” He argued that the cost of using Ethereum had priced out newer entrants, thereby making cheaper solutions like Avalanche viable alternatives. “The idea of sitting around jerking off watching the burn and concocting purity tests, while zero newcomers can afford the chain, is gross,” he wrote. Several developers working on Ethereum and projects in the Ethereum ecosystem publicly criticized Zhu for his comments. Zhu also posted price charts highlighting Avalanche’s parabolic rally throughout the weekend then apologized for his statements on Ethereum. Elaborating on his concerns with Ethereum’s gas fees, he wrote: 

“I don’t know what the solution is. But I do know for the millions of new users coming, they should not be shamed for going to other ecosystems. Neither should devs be shamed for building on them.” 

Disclosure: At the time of writing, the author of this feature owned ETH, ATOM, and several other cryptocurrencies. 

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Is China Considering Lifting The Bitcoin Mining Ban? The NDRC Runs Public Survey

by NEWSBTC

The National Development and Reform Commission is asking the Chinese public for their opinion on the Bitcoin mining ban. Is China’s government playing 4D chess or are they confused and considering backtracking their decision? Can they unring this particular bell or is this a too little too late scenario? Do they really care about what the general public thinks or is this survey just for the optics?

As it usually happens with the Chinese government’s actions, they leave more questions than answers. Nevertheless, let’s unpack the information available and see what Twitter thinks about the situation.

First of all, the official announcement says:

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“In accordance with the relevant work arrangements for the rectification of virtual currency “mining” activities, the National Development and Reform Commission and relevant departments have revised the “Industrial Structure Adjustment Guidance Catalog (2019 Edition)”, and now solicit opinions from the public.”

So, they’re considering “rectification of virtual currency “mining” activities,” by which they mean the Bitcoin mining ban. And by “the public,” they mean “Relevant units and people from all walks of life can provide feedback.”

BTCUSD price chart for 10/25/2021 - TradingView

BTCUSD price chart for 10/25/2021 - TradingView


BTC price chart for 10/25/2021 on FTX | Source: BTC/USD on TradingView.com

Is China Actually Considering Lifting The Bitcoin Mining Ban?

Opinions differ. However, according to Three Arrows Capital’s Su Zhu, that’s exactly what’s happening.

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People in the replies are not convinced. They theorize that the Chinese government is just trying to create a database of people in favor of Bitcoin mining, or that they are just thinking about lifting the Bitcoin mining ban so they can ban it again on the next cycle. Others doubt the miners will return or that new mining operations will pop up. A few, though, think that the Chinese government realized they made a trillion-dollar mistake.

Chinese journalist Colin Wu, however, sees the news from another angle. “It is not un-banning. On the contrary, its content is to write crypto mining into an industry that must be eliminated.”

And he links to a .pdf that says the same thing as the original document, but in a different tone altogether:

“In the “Industrial Structure Adjustment Guidance Catalogue (2019 Edition)”, the elimination category “I. Item 7 is added to “Outdated production technology and equipment” and “(18) Others”, and the content is “virtual quasi-currency’mining’ activity.”

The phrases “Outdated production technology” and “Virtual quasi-currency’mining‘” hit different and tell another story about the Bitcoin mining ban. Wu finishes by saying that “in terms of the current Chinese government’s strong opposition to Bitcoin mining, these comments are likely to be meaningless.”

Conclusions And Speculation

Tick-tock next block. China’s Bitcoin mining ban was a blip on the radar. The network kept running as usual and, a few months later, Bitcoin’s hashrate recovered. We at NewsBTC have been trying to figure out the logic behind the Chinese government’s moves regarding Bitcoin. Unsuccessfully. We looked into the new “China Model” and the small hydropower stations question, wondered about the waning of their hashrate dominance, and looked closely into the now-defunct industry.

Even though it seems like a logical theory, we don’t know if the Chinese government is just clearing out the competition for their future CBDC. We are not sure if this whole operation is part of a bigger one that is trying to control all of the Chinese billionaires. Or if they’re just asserting their dominance and showing everyone who’s the boss. We just know that the Bitcoin mining ban might be the biggest mistake of the century. And we’re not even talking about the trillions in fiat currency that the country is losing. 

The Chinese are banning themselves from participation in the winning open network, from interaction with the biggest idea of the century, from owning a piece of the pristine asset that will change the world for the best.

Did they realize all of this and are gearing up for a change of mind?

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Three Arrows Capital execs launch NFT fund

by Cointelegraph

Executives hailing from Singapore-based fund manager, Three Arrows Capital (3AC), have launched a fund focused on collecting premium digital art in the form of nonfungible tokens (NFTs).

The fund, dubbed Starry Night Capital, was founded by Three Arrows Capital’s CEO, Su Zhu, 3AC co-founder, Kyle Davies, and the pseudonymous NFT collector, Vincent Van Dough.

Van Dough announced the fund via an Aug. 31 tweet, stating: “Our thesis is simple, we believe the best way to gain exposure to the cultural paradigm shift being ushered in by NFTs is owning the top pieces from the most desired sets.”

Zhu shared the tweet, adding: “Excited to make history together.”

3AC is a digital asset-focussed fund manager that was founded in 2012. The firm has made investments in leading layer-one blockchains including Ethereum, Avalanche, and Polkadot, in addition to building an expansive DeFi portfolio including blueships Aave, Synthetix, and Balancer.

While details on the new fund’s roadmap are sparse at this stage, Van Dough revealed that Starry Night Capital hopes to launch a physical gallery “in a major city,” launch an NFT education portal, and explore other “community-building initiatives” by the end of the year. He added:

“The NFT space is not a zero-sum game, it is driven by strong flywheel effects and functions best when the pie is growing for all.”

Zhu, Davies, and Van Dough appear to have already teamed up to purchase nonfungible art together.

On Aug. 27, NFT enthusiast “pixelpete” tweeted that he had sold his one-of-a-kind Art Blocks NFT of Dmitri Cherniak’s artwork, Goose Ringer, to Zhu and Davies in a transaction that Van Dough brokered. The NFT is from Cherniak’s collection, Ringers — each of which was generated algorithmically on the Ethereum blockchain.

The pair paid 1,800 Ether for the token (roughly $5.8 million). However, it is unclear if Starry Night Capital will take possession of the artwork.

Van Dough’s wallet on the OpenSea marketplace also shows an impressive collection of 1,913 NFTs, including work from renowned NFT artist Pplpleasr.

Related: Three Arrows Capital CEO Su Zhu outlines his bullish thesis for Dogecoin

The community reaction to the fund’s launch on Twitter was mostly positive, with names such as Ryan Wyatt, the head of gaming at Youtube and Bankless founder David Hoffman congratulating the team.

However, user “Edgar Dubroviskiy” questioned the idea of purchasing only the “top pieces” in the NFT space, highlighting the high expense and poor liquidity of premium NFTs.