Three Arrows Capital: Annoyed by litigation stalemate, SEC puts its foot in the pot

Three Arrows Capital : agacée par la stagnation de l’affaire, la SEC met les pieds dans le plat

Three Arrows Capital has no end to its bankruptcy administration and is drawing the ire of the US SEC, which is considering closing the case.

SEC makes three arrows capital worse

Three Arrows Capital is struggling to find a way forward following bankruptcy this summer. The company’s management team has been subject to a wave of scandals, with many creditors still awaiting compensation. Between the purchase of a yacht, massive withdrawals and unpaid debts, 3AC is now getting a bad name. An event that could intensify following the SEC’s decision to intervene in the case.

Three months ago, it was reported that the leaders of the collapsed company had fled. While the founders have bounced back to life, their persistence in liquidation has alarmed US regulators. According to Bloomberg, the SEC has actually decided to join the CFTC in launching an investigation into Three Arrows Capital. At the very least, the purpose of the research is to know whether the company has ensured its operations in all legality, without being interested in the failed management of its bankruptcy. However, the latter is believed to have broken the law by lying to its customers about its balance sheet. Also, he may not have registered with the authorities as claimed.

As for Tenio, the liquidator appointed by the judge to wind up the case, he says he had little contact with the founders of Three Arrows Capital. The latter would have had little involvement in the closure of the company and would have provided scant information to Teneo. In the latest news, they have severed all ties and are therefore officially on the run. So the SEC has three steps to bring the bankruptcy to an end, provide justice to the creditors and begin pursuing the management team. Time will tell if Zhu Su and Kyle Davies will be given red notices like Do Kwon.

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More sensible founders

The demise of Three Arrows Capital’s founders only adds a thorn to the authorities. Unlike Do Kwon, who keeps in touch on social media, Zhu Su and Kyle Davies have not reported since last July. In his last publication, Zhu Xu rightly complained that he was not cooperating with his liquidators. A comment that had been taken by his partner two people ago had finally quieted down and it now seemed to refuse to go any further.

Source: Zhu Su’s Twitter account

A few days later, Zhu Su Complained It claimed $5 million against Three Arrows Capital. Although the founders were reluctant to cooperate, it was unclear whether their intentions were truly fraudulent. The case still suggests that most of the bankrupt companies, like Celsius Network, were only aiming to enrich their ranks given their various escapades. The SEC’s investigation may reveal more difficult facts for creditors. However, the iron fist of regulators will speed up repayment once and for all.

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About the Author: Cory Weinberg

"Alcohol evangelist. Devoted twitter guru. Lifelong coffee expert. Music nerd."

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