Bitcoin Dropping to $20K Was the Nail in the Coffin for 3AC, Founders Share

Su Zhu and Kyle Davies – Co-Founders of the distressed cryptocurrency hedge fund Three Arrows Capital (3AC) – explained that accumulative lending agreements and the collapse of the digital asset market are the reasons for the fall of their project. In addition, they said accusations against them of living a lavish lifestyle on the back of broke customers are wrong.

‘The Whole Situation is Regrettable’

The Singapore-based crypto firm – Three Arrows Capital – was among the worst hit entities due to the crash of the digital asset market. In June, it failed to meet margin calls, while earlier this month, a court in the British Virgin Islands ordered it into liquidation.

The fall of 3AC was considered a significant punch for the industry since some of its high-profile creditors include Voyager Digital and BlockchainCom. Some sources revealed that the organization owns nearly $3.5 billion to 27 entities.

Speaking in detail about the firm’s issues and what caused this collapse were the Co-Founders Su Zhu and Kyle Davies. In their view, the combination of one-way bets and accommodative lending arrangements that collapsed simultaneously started the downtrend, later exacerbated by the market’s tumble.

More specifically, Zhu informed that BTC’s massive drop from over $30,000 to and below $20,000 was the “nail in the coffin” for the hedge fund.

Zhu claimed that he and his partner did everything possible to prevent the turbulence, including investing some personal funds:

“People might call us stupid. They might call us stupid or delusional. And, I’ll admit it. Maybe. But they’re going to, you know, say I ran out of money during the last period where I actually put back more of my personal money.”

Zhu also stated that the executive received multiple death threats, which forced them to run away from Singapore. Rumors say they have moved to Dubai, but Zhu did not confirm. He assured that despite the allocation, both are in constant collaboration with the Singaporean relevant authorities.

Spoiling Themselves With Users’ Funds Is not True

The execs were also accused of buying a luxury $50 million yacht days before 3AC went bankrupt. Zhu believes those speculations are “part of a smear campaign” and explained that the boat was purchased a year ago.

The Co-Founders also noted that driving expensive cars and living a lavish lifestyle were never part of their daily routine. In fact, Zhu asserted that he biked to work and back every day and that his family had “only two homes in Singapore.”

“We have never been seen spending a lot of money in a club. We’ve never been seen, you know, driving Ferraris and Lamborghinis around. I think this kind of a blur is just from a classic playbook, you know, when this stuff happens, when the funds get blown away, you know, these are the kind of headlines that people like to play,” he concluded.