The liquidator of Three Arrows Capital accused the co-founders of the fund of embezzlement of assets

The consulting agency Teneo claims that the Three Arrows Capital fund, despite problems with the return of capital to investors, continued to trade cryptocurrencies.

Restructuring agency Three Arrows Capital (TAC) released a court filing by crisis manager Russell Crumpler alleging fund co-founders Su Zhu and Kyle Davies made the down payment on the yacht worth $50 million

The yacht was to be delivered to Italy within two months of the last payment. The document claims that Davis wanted the vessel to be "larger than any yacht owned by even the wealthiest Singaporean billionaires."

It is assumed that the co-founders made the payment with borrowed funds, ignoring the attempts of creditors to get in touch. The document says that Zhu and his wife have purchased two Singaporean VIP bungalows in the past two years for between $28.5 million and $48.8 million.

Financial documents supporting the acquisition were provided as evidence that the co-founders used the company's assets for personal purchases. The founders of a clearly insolvent company should not be allowed to dispose of what could be its assets,” the liquidators assure.

Teneo lawyers argue that Three Arrows Capital, despite the default, continued to trade cryptocurrencies instead of responding to the margin requirements of creditors. Experts suspect the fund transferred $31 million in USDC stablecoins and $900,000 in USDC stablecoins and $900,000 in Cayman Islands-based Tai Ping Shan on June 14, owned by co-founder partner Kelly Kaili Chen, experts suspect.

TAC owes approximately 27 crypto companies $3.5 billion. The largest creditor is the crypto brokerage company Genesis, which lent the fund 2.3 billion. After Three Arrows Capital failed to meet obligations, Genesis sold the collateral and insured its losses.

Recently, a New York federal court froze the remaining assets of cryptocurrency hedge fund Three Arrows Capital after the company filed for emergency bankruptcy filing.