The founder of now-defunct crypto hedge fund Three Arrows Capital (3AC) is reportedly worried about facing jail time after a disagreement with court-appointed liquidators.
According to a new report by Bloomberg, 3AC CEO Su Zhu delivered an affidavit accusing Teneo, the liquidation company in charge of 3AC’s assets, of misleading Singapore’s High Court about the hedge fund’s structure.
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In response, the liquidators are alleging that Zhu and fellow co-founder Kyle Davies are not cooperating with their efforts. The report says the liquidators accused the duo of providing “rather selective and piecemeal disclosures” about 3AC’s assets.
In his affidavit, Zhu claims Teneo “had not provided an entirely complete or accurate version of events” and “inaccurate and misleading” representations of the company’s operations, timelines and relationships to Singapore’s court, according to the report.
Though they declined to comment on specifics, the liquidators have filed responses to Zhu’s claims to Singapore’s court.
Now, Zhu says he’s worried about the “draconian consequences” that could arise from Teneo’s alleged misrepresentations.
Zhu, who had previously identified himself as the director of Three Arrows Capital Pte Ltd (TACPL), says the entity may not be able to fully comply with Teneo’s wide-ranging requests.
Zhu says not being able to comply could have harsh consequences, including fines and prison time for being found in contempt of court.
TACPL left Singapore in July 2021, almost a year before 3AC went bankrupt.
Says Teneo, according to the report,
“We remain optimistic that [the relevant] parties will provide access to complete records and all relevant information to enable us to discharge our responsibilities fully in the interests of the creditors of 3AC.”
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