3AC Liquidators Demand $1.3B from Company’s Founders

The liquidators of Three Arrows Capital (3AC) are filing a suit against co-founders Su Zhu and Kyle Davis, demanding the return of the approximate total of $1.3 billion in funds that were allegedly raised before the collapse of 3AC in June 2022.

The liquidators presented their accusations at a meeting with 3AC’s creditors. The document stated that from May to June 2022, Zhu and Davis increased their leverage after the fund incurred extensive losses from investing in LUNA tokens.

The liquidators declared that by that time, the company was already insolvent.

This suit adds on to prior claims against them for their lack of cooperation in the investigation.

After the Virgin Islands court ordered 3AC’s liquidation in June 2022, the company subsequently filed for bankruptcy protection in the US in July.