Three Arrows Capital to Seek Appropriate Sanctions Over Disappointing Court Filings

After a brief hiatus across social media channels, 3AC co-founder Zhu Su tweeted that their “good faith” to cooperate with liquidators of the hedge fund was “met with baiting.”

• He also posted snapshots of emails sent by Advocatus Legal LLP, the Singapore-based law firm acting on behalf of the fund’s founders, which mentioned that they will take necessary steps to seek the appropriate sanctions.
• The law firm asked the creditors if they mentioned in the court filings the threats of physical violence that the 3AC founders and their families were facing.
• Advocatus Legal LLP also said that their clients have been working under a lot of time pressure and would not proceed with a call that was scheduled for today, given the recent turn of events.
• The response comes a day after the lawyers seeking emergency provisional relief told the court that the founders of the troubled hedge fund were not cooperating.
• The filing with the US Bankruptcy Court for the Southern District of New York also mentioned finding an abandoned office and a pile of old mail. They claimed to have failed to locate the founders and speculated that the duo may have fled Singapore.
• The court-appointed lawyers had also asked the court to subpoena the founders and have them furnish a list of company assets such as wallets it controls, bank accounts, digital assets in its possessions, derivatives contracts, securities, and accounts receivables, and all company records.
• To comply with the demands, a spreadsheet with details of the company’s assets was attached with the most recent email by Zhu’s lawyers.