The founders of Three Arrows Capital (3AC) have finally spoken out about the demise of the cryptocurrency hedge fund, five weeks after the company went into meltdown, according to a report by Bloomberg.
The founders of Three Arrows Capital (3AC) have finally spoken out about the demise of the cryptocurrency hedge fund, five weeks after the company went into meltdown, according to a report by Bloomberg.
In a wide-ranging interview, Su Zhu and Kyle Davies, both 35, who built 3AC into a crypto-trading giant before its collapse, said losses caused by the company’s demise were “regrettable” and admitted that the collapse had caused widespread pain. The pair have blamed a systemic failure of risk management and easy-flowing credit, which exacerbated losses, for the firm’s downfall.
Advisers in charge of liquidating the fund previously said in filings that Zhu and Davies hadn’t cooperated with them and that their whereabouts earlier this month was unknown. Zhu though refuted that claim in the interview saying that they had been cooperating from ‘day one’ and that newspaper reports that they made a $50 million down payment on yacht before the fund went under were part of a smear campaign.
