3ac co-founders explained the collapse of the hedge fund with excessive self-confidence

The founders of Three Arrows Capital Su Zhu and Kyle Davis in an interview with Bloomberg called self-confidence generated by a long-term bull market as the root cause of the collapse of the liquidated hedge fund.

According to them, similar sensations were characteristic of the entire cryptocurred industry.

For customers, such activities were positioned as “risky”. In May, in May, against the backdrop of a deterioration in the mood in the market, when the company fulfilled the marginal requirements that have arisen.

Self -confidence gave rise to a “systemic failure in risk management,” noted Su Zhu and Kyle Davis.

According to them, a combination of interconnected unilateral rates and adaptive borrowing agreements that “exploded” at one moment affected. This led not only to the collapse of their fund, but also to the problems of the Celsius Network, Voyager Digital and Blockfi.

“We continued to do business as usual. But then, when Bitcoin collapsed from $ 30,000 to $ 20,000, […] it became a kind of nail in the coffin cover “, – admitted Su Zhu.

The founders did not take into account that the credit market can have a cyclic nature. A situation may arise when additional liquidity is required, and access to it is already lost. When “something is already wound on the fan”, they added.

The founders of 3AC rejected speculation on the withdrawal of assets shortly before the collapse of Three Arrows Capital, calling them part of the slander.

“We can be called stupid or obsessed. […] They will say that I “washed off” with money when I actually returned more of my personal funds ”, – said Su Zhu.

Regarding the yacht, one of the founders said that it was purchased more than a year ago and commissioned in Europe. A related transactions are available to the general public.

Su Zhu rejected the opinion of his inherent extravagant lifestyle. According to him, he rode a bicycle to work, and the family owns “only two houses in Singapore”.

“We have never seen us traveling to Ferrari and Lamborghini. Such outlining us is from the classical play […]. Funds explode, […] and then headlines appear that people like to discuss “, – said Zhu.

The co -founders did not agree with the statement that they disappeared and did not support the dialogue with creditors. They explained the concealment of their location with threats of physical reprisal and said that they communicate with clients from the “first day”.

At the moment, both are on the way to Dubai. They called their goal “calm and ordered elimination of the complex interweaving of their assets”.

On July 22, it became known that the Teneo Consulting Company attracted by the 3C Consulting Company gained control over the ledge of the hedge fund with an estimate of $ 40 million. This is stated in the materials for the court, which were at the disposal of Bloomberg.

Assets include cryptocurrency, NFT, shares in startups and bank accounts. This is only a small part of $ 2.8 billion, which the lenders requested.

The founders of 3ac still own or control “certain digital assets and bank accounts”, the documents said.

Starting from July 1, the liquidators sent requests for information about 40 to persons, as well as about 30 banks and exchanges that could work with a hedge fund.

Recall, according to journalist Colinin Wu, the https://gagarin.news/news/michael-saylor-doesnt-care-about-crypto-winter-wants-more-btc/ amount of 3ac obligations uncovered by assets is in the range of $ 1 billion- $ 1.5 billion.

In early July, 3AC submitted a bankruptcy petition to the court of New York.

Before that, the court of the Virgin Islands decided to eliminate Three Arrows Capital.

Read the FORKLOG Bitcoin News in our Telegram-cryptocurrency news, courses and analytics.