Three Arrows Capital (3AC) founder Su Zhu called the hedge fund creditors’ statements “harassment” and questioned whether the company had breached its obligations in the liquidation process.

On July 11, the media announced that the founders of 3AC “will be able to transfer or otherwise dispose of assets” prior to the company’s liquidation. Such concerns arose over an alleged lack of “meaningful cooperation” – the hedge fund’s Singapore office is down and communication is only through its lawyers.

In response, Su Zhu provided a screenshot of the correspondence between the Advocatus Law firm, which represents them, and the plaintiffs’ lawyers.

According to the document, liquidators ignored StarkWare’s offer to take over 3AC, resulting in the hedge fund losing “significant value.” According to the founders, this was a breach of their obligations. The Advocatus Act urged lenders to answer a series of questions about StarkWare’s actions regarding its expired offer.

In another letter, which Su Zhu provided a screenshot of, Advocatus Law explained that the involvement of the agents was related to the “threats of physical violence” and “working under severe time constraints” due to the 3AC founders’ request for MAS.

Representatives attached a spreadsheet listing the hedge fund’s holdings to the letter and indicated they were willing to update it as more information became available.

Advocatus Law expects creditors to report the details of this email to the court. Depending on the response to the message, the firm will inform when Zhu and Davis are ready for direct dialogue.

According to Reuters, the liquidators were allowed to issue subpoenas and file claims against the assets of the bankrupt company. This came after Zhu and Davis failed to appear at a bankruptcy court hearing on July 12.

Recall that in June, against the background of the collapse of the cryptocurrency market, there were rumors about the bankruptcy of Three Arrows Capital. Trading firm 8 Blocks Capital accused the hedge fund of using client funds to cover margin calls.

Crypto broker Voyager Digital has sent 3AC a notice of default due to non-payment of a loan.

The British Virgin Islands Court ordered the liquidation of the hedge fund. At the beginning of July, Three Arrows Capital filed for bankruptcy in the New York court.

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