Three Arrows Capital co-founder Su Zhu and co-founder Kyle Davies’ wife are among the creditors of the bankrupt hedge fund.
According to Davies’ affidavit filed with the Eastern Caribbean Supreme Court, Zhu lent the firm over $5 million. According to the same statement, Davies’ wife Kelli Kali Chen also lent the company $65.7 million.
Davies stated that as an investor in Three Arrows Capital, Zhu had a stake of $1.4 billion on December 31, 2021. He noted that this position was largely erased due to the collapse in the crypto market.
Davies, “Mr. Investors like Zhu suffered huge losses in TACL.”
An organizational chart among the documents presented also shows that Chen, along with Zu, owns a significant portion of Tai Ping Shan (TPS). This company is the alleged OTC trading arm of Three Arrows Capital.
These details were revealed last month by Teneo, the firm responsible for overseeing the liquidation of Three Arrows Capital. The company shed light on a lot of important information in a 1157-page legal document uploaded online.
The documents showed that Three Arrows Capital owed $3.5 billion to various crypto companies. The largest debt stood out as $2.4 billion to Genesis Trading, which was acquired by Digital Currency Group.
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