Three Arrows Capital had positioned itself for a deal that “ultimately did not go through,” and “the whole situation is unfortunate,” co-founders Zhu Shu and Kyle Davies told Bloomberg in a statement. Interview published today- and at the same time explains that they are on their way to Dubai.
“The whole situation is unfortunate,” Davies told Bloomberg. “A lot of people have lost a lot of money.”
Zhu added, ‘We positioned ourselves for some sort of deal that ultimately did not materialize.”
3AC had grown into one of the most well-known crypto hedge funds to manage billions of dollars before imploding after the collapse of the Terra ecosystem, and it is associated with the Luna token in May.
The fund filed for bankruptcy earlier this month. Court documents released Monday by 3A’s liquidators and later deleted show that 3AC owed $3.5 billion to 27 crypto companies.
In the interview, the founders explained how the bets on Luna, the Grayscale Bitcoin Trust, and the use of Ether went wrong.
“We did not realize that Luna could go to Zero in a matter of days,” Zhu said.
They both declined to give their location but said they were en route to Dubai, hoping to handle 3AC’s liquidation.
“For Kyle and I, there are so many crazy people in Crypto, who have been making death threats or all this noise,” Zhu said. ‘We think it is just in everyone’s interest if we can be physically safe and keep our distance.”