TechFlow news, according to Decrypt, a court filing submitted by Three Arrows Capital co-founder Kyle Davies revealed that Zhu Su, the other co-founder of Three Arrows Capital, held a $1.4 billion stake in the firm. In his testimony, Kyle Davies stated that due to the recent downturn in the crypto market, "most of the value of these investments has been wiped out. Investors like Zhu Su have suffered substantial losses at Three Arrows Capital."
The liquidation process for Three Arrows Capital has been ongoing since early July, but court documents show that creditors halted hearings on the company's case in the weeks before it filed for bankruptcy. An emergency creditor hearing was held on July 12 after the founders of Three Arrows Capital were accused of failing to cooperate with the liquidation proceedings. Ironically, Russell Crumpler, one of the liquidators of Three Arrows Capital, wrote that in mid-June, co-founder Zhu Su claimed on Twitter that Three Arrows was "in communication with relevant parties," while at the same time the firm appeared to have ceased contact with its creditors.
Earlier reports indicated that creditors' claims against Three Arrows Capital totaled $2.8 billion, with Su Zhu, ThreeAC Limited, and Chen Kaili Kelly all filing claims against the fund as creditors. Specifically, Su Zhu claimed $5 million, ThreeAC Limited claimed $25 million, and Kyle Davies' wife, Chen Kaili Kelly, claimed $66 million.
