Share this article
Three Arrows Capital Liquidators Seek $1.3B From Bankrupt Hedge Fund's Founders: Bloomberg
The fund founded by Su Zhu and Kyle Davies suffered big losses on the collapse of the Terra ecosystem starting in May 2022 and took on additional leverage despite already being insolvent, the liquidators say.
Updated Jun 27, 2023, 3:31 p.m. Published Jun 27, 2023, 3:31 p.m.
Three Arrows Capital (3AC) liquidators are seeking $1.3 billion from the bankrupt crypto hedge fund's founders, saying they took on additional debt in the months before its collapse even though it was already insolvent, Bloomberg reported Tuesday.
The liquidators, partners at consulting firm Teneo, discussed the allegations with Three Arrows creditors, according to the report, which cited a person familiar with the matter.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
The fund suffered big losses on the collapse of the Terra ecosystem starting in May 2022, and founders Su Zhu and Kyle Davies took on more leverage. The liquidators are seeking to recover the funds in a British Virgin Islands court, the person said.
3AC's collapse was one of the key events precipitating last year's crypto winter, leading to knock-on failures of other crypto firms with exposure to the hedge fund. These included Voyager Digital, Celsius Network and Genesis Asia Pacific, which all subsequently filed for bankruptcy protection. Genesis, like CoinDesk, is part of the Digital Currency Group.
A Teneo spokesperson confirmed the accuracy of the report to CoinDesk but declined to comment further.
Read More: Bankrupt Hedge Fund 3AC's Return as a VC Stirring Up Crypto Community
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
Brazil’s Largest Asset Manager Recommends Investors Put Up to 3% of their Money in Bitcoin to Hedge Against FX, Market Shocks
The recommendation is in line with other global asset managers like BlackRock and Bank of America suggesting small portfolio allocations to the largest cryptocurrency.
What to know:
- Itaú Asset Management recommends Brazilian investors allocate 1-3% of portfolios to bitcoin for diversification, citing its low correlation with traditional assets.
- The recommendation is a measured approach, suggesting a small, steady exposure to bitcoin as a complementary asset.
- In a year-end analyst’s note, the firm called for a disciplined, long-term mindset, warning against market timing and suggesting that a small allocation can act as a partial hedge and offer access to global returns.
Top Stories
