- They accused Soo Joo and Kyle Davis of using a lot of leverage after the bankruptcy
- The charges were discussed at a meeting with 3AC creditors today
The liquidators of Three Arrows Capital are trying to get $1.3 billion from the co-founders of the bankrupt hedge fund. After the collapse of the Terra ecosystem last May, 3AC suffered huge losses. And Suh and Kyle are partly to blame.
According to the report, 3AC’s liquidators accuse its co-founders of using “significant leverage” during May-June 2022, after the fund suffered serious losses. At the time, the liquidators were already treating 3AC as insolvent.
After Three Arrows collapsed, Zhu and Davis remained silent for several weeks, but gradually returned, first to social media and then to entrepreneurship.. As early as April of this year, the pair teamed up with Mark Lemb, founder of CoinFLEX, to launch a new business called OPNX. The platform achieved no success and within days received a warning from the regulator in Dubai.
Earlier this month, liquidators also asked a New York judge to fine Davis $10,000 a day. They explained that such a significant fine was warranted because Kyle had not responded to a subpoena regarding the production of business documents and other information.
In addition, they added that it was not known where Davis and Zhu now reside, but court documents cited earlier this month reported that Davis had gone to Bali after the 3AC collapse.