The founders of the now bankrupt cryptocurrency hedge fund, Three Arrow Capital (3AC), have finally resurfaced after five weeks without anyone knowing about them.
In an interview with Bloomberg, su zhu Y Kyle Davis, The two founders of the cryptocurrency hedge fund admitted that overconfidence born of a prolonged bull market, in which lenders saw their values swell by virtue of funding companies like theirs, led to the series of poor decisions. that should have been avoided from the start.
Zhu also revealed his closeness to Terra founder Do Kwon, stating that they believed the project was going to do great things. He admitted that the company’s closeness to Terra caused them to miss certain red flags about the company, ultimately causing a $500 million investment to shrink to zero. Zhu explained:
“If we could have seen that, you know, that’s the way everything is now, potentially kind of attackable in some way, and that it had grown too, you know, too big, too fast.”
The two founders claimed that the investment in LUNA (now known as Luna Classic) was surely a setback for the firm. However, the real trouble started when Bitcoin (BTC) fell below $20,000, and the company found it impossible to access additional credits. Zhu stated that even after the collapse of LUNA, the company was still operating normally, explaining:
“Throughout that period, we continued to work as usual. But then yeah, after that day, when, you know, Bitcoin went from $30,000 to $20,000, you know, that was extremely painful for us. And that was in In a way, it ended up being a kind of nail in the coffin.”
When asked about his whereabouts and why he disappeared, the founders blamed a series of death threats for the reason for going underground. The duo did not reveal their current whereabouts but said they were relocating to Dubai.
The founders denied any accusation that they took money before 3AC went bankrupt and also clarified certain details regarding the $50 million yacht that was revealed in the recently filed court case. Zhu said the ship “was purchased more than a year ago and commissioned to be built and used in Europe,” adding that the yacht “has all the registrations of yacht cats.”
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Keep reading:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.