3AC founders break their silence, here’s what they said. After weeks of going AWOL, Three Arrows Capitals’ two founders have finally spoken up about what exactly happened and what they are planning next.
Zhu & Davies Finally Speak Out
In a recent interview with Bloomberg, Su Zhu and Kyle Davies, co-founders of crypto hedge fund Three Arrow Capital (3AC) which had filed for bankruptcy earlier in July, finally resurfaced after their whereabouts were unknown for many weeks.
The two founders admitted in the interview that 3AC’s fall happened due to a series of bad decisions made after misjudging the market. “The whole situation is regrettable,” said Davies.
Su Zhu and Davies also explained that they hid their whereabouts from the public to protect their own safety after they received a number of death threats from 3AC’s bankruptcy.
Today, 3AC founders Su Zhu and Kyle Davies broke their silence in an interview with Bloomberg.
The two gave insights on their current situation, and reflected upon past decisions made by the firm.
Here’s what it included..
— pastry (@PastryEth) July 22, 2022
A large part of the interview focused on Zhu and Davies clearing their names from rumours of their wrongdoings that led to 3AC’s fall. Both of them heavily denied any allegations of pulling out money before 3AC went bankrupt.
“People may call us stupid. They may call us stupid or delusional. And, I’ll accept that. Maybe, but they’re gonna, you know, say that I absconded funds during the last period, where I actually put more of my personal money back in. That’s not true.” Zhu explains.
Relation To Terra Labs
Zhu also revealed that both he and Davies were close to Terra Labs’ founder, Do Kwon, and that their friendly relationship caused them to overlook certain red flags about the Terra firm. This led to $500 million worth of their investment into Terra going to zero after the notorious Terra crash earlier this year.
“We began to know Do Kwon on a personal basis as he moved to Singapore. And we just felt like the project was going to do very big things, and had already done very big things,” said Zhu.
Despite the collapse of Terra being a major setback for 3AC, the founders claimed that the firm’s biggest problems started when Bitcoin (BTC) fell below $20,000.
“Throughout that period, we continued to do business as usual. But then yeah, after that day, when, you know, Bitcoin went from $30,000 to $20,000, you know, that, that was extremely painful for us. And that was in, that ended up being kind of the nail in the coffin.” Zhu explains.