Summary:
- Su Zhu and Kyle Davies of Three Arrows Capital Wanted to Buy Yacht Worth $50 Million, Reports Say .
- The supposedly all-white luxury boat was to carry the name “Much Wow”. a nod to the popular cryptocurrency Dogecoin.
- 3AC filed for bankruptcy the same month Much Wow was due to arrive and weigh anchor.
- The crypto hedge fund also has outstanding debt with Voyager Digital at press time.
- A liquidation proceeding led by Teneo Restructuring and a committee of plaintiffs is underway, per reports
Su Zhu and Kyle Davies, co-founders of the crypto hedge fund in bankruptcy Three Arrows Capital, planned to buy Singapore’s most luxurious yacht shortly before the contagion spread through the cryptocurrency market and sank the company.
A Monday NYMag article revealed that Zhu and Davies hoped to name their white boat “Much Wow”, a supposed joke and homage to the cryptocurrency meme Dogecoin. The pair also planned to deploy their lavish vessel as a showroom for a large collection of non-fungible tokens (NFTs), otherwise known as digital art or collectibles.
However, the $50 million ship never set sail because the crash of Terra has caused ripples throughout the crypto ecosystem. Three Arrows Capital then filed for Chapter 11 bankruptcy in July 2022, the same month Much Wow was set to weigh anchor. where Zhu and Davies are as “unknown”.
Su Zhu also made a real estate investment and bought a house in his wife’s name worth around $20 million, according to NYMag’s report. According to other sources, Zhu has since tried to sell the house for around $35 million.
Liquidation of the capital of the three arrows and Voyager Ready
Shortly after Terra collapsed and Three Arrows Capital filed for bankruptcy, crypto broker Voyager Digital and digital asset trading platform, revealed that Zhu’s hedge fund owed approximately $650 million in USDC stablecoin and Bitcoin (BTC) from Circle.
Voyager followed the news with a notice of default on loan after 3AC misses repayment deadline.
A court in the British Virgin Islands subsequently ordered Three Arrows Capital to go into liquidation. Teneo Restructuring was appointed to lead the effort while a committee was in place on July 18 to oversee the process.
Bloomberg released a report a few days later revealing that Zhu and Davies were on their way to Dubai in the midst of liquidation proceedings and believed to be facing death threats. The pair also said the 3AC incident was regrettable and that the company was planning for a deal that never came.
FTX CEO Sam Bankman-Fried Comments on 3AC Debacle
Weeks later, the liquidation of 3AC continues and the contagion remains in the crypto despite the latest relief rally, according to reports. FTX chief Sam Bankman-Fried opined that the fall of 3AC could have been the biggest event to rock digital assets so far in 2022.
I suspect they could represent 80% of the total original contagion. They weren’t the only ones who exploded, but they did it way more than anyone else. And they had a lot more trust from the ecosystem before that.
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