Three Arrows (3AC) founder breaks silence on bankruptcy talks
Zhu Su, the founder of Three Arrows Capital (3AC), has denied claims that he is not cooperating with liquidators. He also accused the liquidators of dereliction of duty.
Speaking for the first time in a month on Twitter, he revealed that the effort to cooperate in good faith with the liquidators had run into a bait. He also attached two separate notices sent by Zhu Su’s legal team, Advocatus Law LLP.
3AC founder rejects allegations of non-cooperation
The opinion of Christopher Anand Daniel, managing partner at Advocatus Law LLP, accuses the liquidators of acting in bad faith and luring the founders of 3AC. It reveals that the founders of 3AC received threats of physical violence and faced questions from the Monetary Authority of Singapore, resulting in time constraints.
The notice also threatens to seek appropriate sanctions from the competent authorities. Daniel also accuses the liquidators of leaking the court documents to the media. Additionally, Daniel informs in the notice that Zhu Su and Kyle Davies will not be attending the court proceedings today.
In a separate notice, Zhu Su’s legal team accuses the liquidators of breach of duty for failing to exercise the offer to buy StarkWare tokens, which they claim caused damage to the value of the company. ‘company. The notice claims that Zhu Su is also an investor and a creditor of the company and has been harmed by this failure.
Daniel asks if the liquidators contacted StarkWare before July 5, 2022, the deadline for the StarkWare option.
Experts warn 3AC bankruptcy may hurt industry
Adam Cochran, partner at Cinneamhain Ventures, warns that Three Arrow Capitals’ refusal to cooperate with liquidators massively hurt the crypto industry.
Cochran believes that 3AC’s non-cooperation can seriously alter the timing and severity of any forced sale by liquidators. It reveals that 3AC’s non-cooperation will result in the forced liquidation of all tokens held by 3AC in custody or in exchange.
Cochran also believes this will lead to the liquidation of class equity funds, the loss of treasuries and the forced sale of all buy positions. This could do a lot of damage to the crypto industry, especially during a bear market.
Cochran points out that the 3AC debacle will further give reasons for regulators not to approve crypto products.
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