“The whole situation is unfortunate,” commented one of the co-founders of the beleaguered crypto-fund. They said death threats forced them to go into hiding.
- Kyle Davies and Su Zhu, co-founders of Three Arrows Capital, talk to Bloomberg.
- Death threats forced them into hiding.
- They talked about some of the events that led to the collapse of the fund.
- They revealed that they had a personal relationship with Terra’s Do Kwon.
After several weeks missing, the co-founders of the beleaguered cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. fund,Three Arrows Capital capital is most commonly defined as the large sum of money you would use to invest. (3AC), Kyle Davies and Su Zhu, have broken their silence on a interview for Bloomberg .
From an unidentified location, the co-founders spoke to the news outlet about their decision to go underground and the events that led to the collapse of their company, which once ranked as one of the largest cryptocurrencies in the industry.
“ The whole situation is regrettable ” Davies told Bloomberg noting that the company had positioned itself for a bull market an area or arena, online or offline, in which commercial dealings are conducted. that never came and denying claims that the duo withdrew money from the fund before its collapse. “ Many people lost a lot of money “.
Zhu revealed that the couple had faced death threats in recent weeks after a court in the British Virgin Islands order last month to liquidate its assets and file for bankruptcy. The document relating to this legal process has brought to light various details about 3AC’s insolvency, including a USD $3.5 billion debt to some 27 cryptocurrencies.
In addition, that document also records statements from several creditors who complained that Zhu and Davies had cut off contact with them after the legal proceedings requiring their attention were brought to their attention. On the other hand, the lawyers in charge of conducting the liquidation liquidation refers to the conversion of an asset or cryptocurrency for fiat or its equivalents. process had previously indicated that none of the co-founders had cooperated in the proceedings and that their whereabouts were unknown.
Although they did not disclose their location, the partners addressed these claims by denying that they had been uncooperative and stressing that death threats had forced them to go into hiding. “ That does not mean that we have not communicated with all relevant authorities. “, dijo Zhu and Bloomberg in a phone call. “ We have been communicating with them from day one “.
Terra’s implosion and other reasons for its collapse
En cuanto a los eventos que llevaron a Three Arrows Capital to insolvency, its co-founders mentioned a number of elements, including the abrupt implosion of the Earth a project in which they both trusted.
The partners, who had already recognized massive losses from the investments in LUNA and now defunct stablecoin a cryptocurrency with extremely low volatility, sometimes used as a means of portfolio diversification. Examples include gold-backed cryptocurrency or fiat-pegged cryptocurrency. algorithmic TerraUSD revealed in this regard that they had a personal relationship with the founder and CEO of Terraform Labs , Do Kwon.
“ We got to know Do Kwon on a personal basis when he moved to Singapore. And it seemed to us that the project was going to do very big things, and he had already done very big things. “he stressed, talking about the company’s miscalculations.
What we did not realize was that LUNA was capable of dropping to zero cash cash is the most liquid form of money: physical coins and banknotes in the most narrow sense of the term. in a matter of days and that this would catalyze an industry-wide credit squeeze that would put significant pressure on all of our illiquid positions. .
The duo also mentioned the fact that they had prepared themselves for a bull a person that is optimistic and confident that market prices will increase, this person is also known to be "bullish" about the market or price. cycle that never came . Zhu recognized that the reason for the collapse was leveraged trading in the hope of a rally in the cryptocurrency market. He compared the implosion of 3AC with the implosion of Celsius a troubled crypto lending firm liquidity how easily a cryptocurrency can be bought and sold without impacting the overall market price. that has also filed for bankruptcy.
On the other hand, the report of Bloomberg highlights that the premium and then the discount of Grayscale Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. Trust a trust is a fiduciary relationship in which one party, known as a trustor, gives another party, the trustee, the right to hold title to property or assets for the benefit of a third party, the beneficiary. (GBTC) also affected 3AC, which had a significant position in that investment vehicle linked to Bitcoin . The co-founders said that things had really gotten “. painful ” when Bitcoin fell below USD $30,000.” That was kind of a nail in the coffin. “, says Zhu.
About the $50 million yacht
During the interview, they also gave their side of the story about the reports revealing the acquisition of luxurious properties and hinting at possible embezzlement. A few days ago we reviewed that the legal documents in question indicated that Zhu and Davies bought a $50 million yacht while the company was under investigation.
This property “ was purchased more than a year ago and commissioned for construction and use in Europe. “, Zhu said, rejecting insinuations of embezzlement and adding that the money trail is verifiable. The co-founder, who pointed out that the reports are part of a smear campaign He also rejected the perception that the two had an extravagant lifestyle. He told Bloomberg that he uses the bike to commute to work every day and that his family “ only has two houses in Singapore “.
We were never seen in any clubs spending a lot of money. We were never seen, you know, driving Ferraris and Lamborghinis around. This kind of smearing of us, I think, is just from a classic playbook of, you know, when these things happen, when the funds blow up, then you know, these are the kind of headlines that people like to reproduce.
“ La gente puede llamarnos estúpidos. You can call us stupid or delusional. And I will accept it. Maybe it’s “, agregó. “ But they’re going to say that I’ve been leaking funds during the last period, where I actually put in more of my personal money. That’s not true.
On the road to Dubai What’s next?
As creditors seek to reach a deal that could take months, if not years, Zhu and Davies expressed their willingness to assist in the process as much as possible. “ For now, things are very smooth and the main emphasis is on helping the creditor recovery process. “, said Zhu a Bloomberg .
According to the report, the co-founders now plan to head to Dubai in the United Arab Emirates due to that city’s crypto-friendly stance. “ As we had planned to move the business to Dubai, we need to go there soon to assess whether we are moving as originally planned or if the future holds something different. “, indicó Zhu. “ For now, things are very smooth and the main emphasis is on helping the creditor recovery process. “.
“ For Kyle and I, there are so many crazies in cryptocurrencies that made death threats or all this kind of noise. We believe it is in everyone’s best interest if we can be physically safe and keep a low profile. “, agregó.
- Voyager Digital digital technologies are these electronic tools that have the ability to generate, store or even process data. reported that its severance plan could change change — a concept relevant to cryptocurrencies that use the UTXO model — is the number of coins sent back to a user after they use their unspent outputs to initiate a transaction. depending on what happens with Three Arrows Capital.
- Three Arrows Capital received a notice of default for non-payment of more than $650 million in loans
- Coinbase is an American company that operates a cryptocurrency exchange platform. addresses insolvency rumors, says it has no exposure to Celsius, 3AC and Voyager
Article by Hannah Estefania Perez / DiarioBitcoin
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