Liquidators misled S'pore court:Three Arrows co-founder

The fight between the founders of defunct crypto hedge fund Three Arrows Capital and the court-appointed liquidators charged with unwinding their assets has reached Thailand.

Mr Zhu Su, who, along with co-founder Kyle Davies, has been evasive about his whereabouts since the spectacular collapse of their fund, delivered an affidavit in person in Bangkok on Aug 19, according to a notarised document.

In the affidavit, Mr Zhu accused the liquidators of misleading the High Court of Singapore about the hedge fund's structure. Three Arrows moved its registration to the British Virgin Islands after having previously operated out of Singapore. A court in the British Virgin Islands in June appointed advisory firm Teneo to liquidate Three Arrows' assets.

The liquidators have said in Singapore court that Mr Zhu and Mr Davies have provided "rather selective and piecemeal disclosures" about the fund's assets.

Mr Zhu's affidavit alleges that the liquidators "had not provided an entirely complete or accurate version of events" to the Singapore court, which earlier this week formally granted a petition by Teneo to recognise the liquidation order in the country.

In the affidavit, Mr Zhu cites multiple different entities in his and his co-founder's financial universe. According to him, the liquidators offered "inaccurate and misleading" representations of the operations, relationships and timelines associated with these entities in their petitions to the Singapore court.

Mr Zhu identified himself as a director of Three Arrows Capital Pte Ltd, or TACPL. This entity, according to him, first became a registered fund manager in Singapore "in or around" August 2013 and was licensed here until July 31, 2021.

He also described two feeder funds: Three Arrows Fund Ltd, or TAFL, registered in the British Virgin Islands, and Three Arrows Fund LP, or TAFLP, registered in the US state of Delaware. These entities fed into a master fund named in the affidavit as "the Company".

The entity formerly registered in Singapore, TACPL, ceased to be the investment manager for the master and feeder funds as at Sept 1, 2021, according to the affidavit. In its place, enter a fourth entity: ThreeAC Ltd, domiciled in the British Virgin Islands and which has operated as investment manager for those funds "since in or around August 2021".

The specifics of these representations matter, according to Mr Zhu, because the fund's Singapore entity, TACPL, may not be able to fully comply with the liquidators' wide-ranging demands for information.

Mr Zhu noted that TACPL's officers and representatives, of which as a director he is one, could themselves face fines and imprisonment if they are found in contempt of the court.

BLOOMBERG