After nearly a month of inactivity, co-founder of Singapore-based crypto venture capital firm Three Arrows Capital (3AC), Su Zhu, returned to Twitter.
Upon his explosive resurfacing on the social media platform, Zhu blamed liquidators for ‘baiting’ them – with regards to StarkWare tokens.
Su Zhu, co-founder of Singapore-based crypto venture capital firm Three Arrows Capital (3AC), returned to Twitter after nearly a month of inactivity. In another cryptic tweet, he blamed liquidators for baiting them with respect to StarkWare tokens.
The cryptic tweet with attached mail from legal counsel claimed that Starkware equity had a token warrant that expired on July 5 and that the liquidator didn’t exercise the warrant, resulting in the loss of Starkware tokens. Zhu blamed liquidators for not using the Starkware tokens and claimed they baited the firm to use information in court.
These latest revelations come days after 3AC filed for a Chapter 15 bankruptcy in a New York court after it failed to meet several margin calls from its lenders. The rumors about the firm’s insolvency began in June and later, a British Virgin Islands court-ordered liquidation of 3AC funds.
Sadly, our good faith to cooperate with the Liquidators was met with baiting. Hope that they did exercise good faith wrt the StarkWare token warrants. pic.twitter.com/CF73xI8r6n
— Zhu Su 🔺 (@zhusu) July 12, 2022
3AC’s trouble began with the bear market turmoil in May that was fueled by the Terra (LUNA) — now called Terra Classic (LUNC) — ecosystem crash. Later, it was revealed that the crypto hedge fund had accumulated $559 million worth of locked LUNA, which depreciated to $650 after the crash. The firm also held a significant position in Solana (SOL) and Avalanche (AVAX), which fell to new lows in the same time frame.
With the crypto market crash, most cryptocurrencies lost nearly 70% of their valuation from the top.
3AC also held significant positions in synthetic assets such as Grayscale Bitcoin Trust (GBTC) and Lido’s Staked ETH (stETH). So when the prices of top cryptocurrencies dipped to a four-year low, it led to a series of liquidations for the troubled crypto hedge funds. It has been estimated that 3AC accumulated nearly $400 million in liquidation across multiple platforms.