3AC founders spent $50 million on yacht, bungalow

  • Founders of the beleaguered crypto lending and borrowing firm Three Arrows Capital, spent $50 million as a down payment for a luxury yacht and another S$ 48.8 million to purchase a bungalow in Singapore

Crypto Desk
First Published19 Jul 2022, 10:44 PM IST
Three Arrows CapitalFounders of the beleaguered crypto lending and borrowing firm Three Arrows Capital (3AC), spent $50 million as a down payment for a luxury yacht and another S$ 48.8 million to purchase a bungalow in Singapore (Representative image)
Three Arrows CapitalFounders of the beleaguered crypto lending and borrowing firm Three Arrows Capital (3AC), spent $50 million as a down payment for a luxury yacht and another S$ 48.8 million to purchase a bungalow in Singapore (Representative image)(AFP)

Founders of the beleaguered crypto lending and borrowing firm Three Arrows Capital (3AC), spent $50 million as a down payment for a luxury yacht and another S$ 48.8 million to purchase a bungalow in Singapore, according to a 1,157-page affidavit drafted by liquidator Russell Crumpler and published by 3AC’s restructuring firm Teneo.

Yacht delivery in Italy

The affidavit states that Su Zhu and Kyle Davies made a down-payment on a $50 million yacht, with the yacht to be delivered sometime in the next two months in Italy, after which, the remaining payment would have to be made.

The co-founders are believed to have made the payment with borrowed funds while ignoring attempts by the Company’s creditors to reach out to the company.

Zhu purchased a prestigious bungalow in Singapore

The liquidators said Zhu purchased a S$48.8 million “Good Class” bungalow in Singapore and that the co-founder, along with his wife are joint tenants of the property.

“The founders of the clearly insolvent company should not be allowed to deal with what may be assets of the company,” according to the liquidators.

Further, the filing states that instead of responding to margin calls from lenders, 3AC continued to trade cryptocurrencies.

$31 million transferred to company in Cayman Islands

The fund is also believed to have transferred $31 million in stablecoin USDC and $900,000 in USDT to Cayman Islands-based company Tai Ping Shan Limited on 14 June, owned by Zhu and Kyle Davies’ partner Kelly Kaili Chen.

Recently, the lawyers for 3A had claimed that founders Su Zhu and Kyle Davies might have fled Singapore and that their whereabouts are unknown.

According to 3AC’s bankruptcy filing, the firm had over $3 billion of assets under management as of April 2022.

According to the company’s filing, it owes about 27 crypto firms around $3.5 billion, with its biggest creditor being crypto brokerage Genesis, which loaned the fund $2.3 billion.

The firm sold its collateral and hedged its downside when 3AC failed to meet a margin call in June, the company’s CEO Michael Moro had stated.

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First Published:19 Jul 2022, 10:44 PM IST
HomeMarketsCryptocurrency3AC founders spent $50 million on yacht, bungalow

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