Founders of Three Arrows Capital after declaring bankruptcy: "the whole situation is regrettable"

This week, the two co-founders of hedge fund Three Arrows Capital spoke to Bloomberg Co-founders Su Zhu and Kyle Davies did not disclose their whereabouts, but a lawyer who followed the conversation noted that the duo is located in the United Arab Emirates.

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The founders of 3AC discuss the company's financial difficulties

Crypto hedge fund Three Arrows Capital Ltd. (3AC) has been a focal point in the cryptocurrency sector for the past few weeks since reports in mid-June that the fund was insolvent.

Amidst all the chaos surrounding the company, the two co-founders could not be reached and no one was sure of the duo's whereabouts. This week they decided to do an interview with the Bloomberg agency. Both have acknowledged that the company's outage has spread like a contagion across the entire crypto industry and deny that they attempted to transfer funds from the company's coffers before the total collapse.

On July 8, reports noted that they were in hiding and uncooperative. However, Zhu said the founders were forced into hiding because they received death threats. Davies stressed that the whole ordeal was unfortunate and the duo are aware that many people have lost their funds.

The whole situation is deplorable. Many people lost a lot of money.

The co-founders of 3AC explained that they were extremely bullish before the collapse and had deployed a number of leveraged trades. Interestingly, before the fall of the Zhu company taught on Twitter about caution with "a fair amount of leverage."

Zhu also talked about other crypto firms such as Celsius. "It's no surprise that Celsius and these kinds of companies, we're having problems at the same time...if we're in the business of taking deposits and then generating revenue, then that means we're doing similar deals."

The 3AC executive also pointed to speculation and allegations that Zhu and Davies lived extravagant lifestyles, saying the company's yacht was purchased last year and the money was fully traceable. Zhu further noted that he only has two houses in Singapore and lives modestly.

Toward the end of the interview, the 3AC co-founders discussed how caught off guard they were by the collapse of the Terra ecosystem.

We got to know Do Kwon personally when he moved to Singapore. And we just felt that the project was going to do very big things and that it had already done very big things.

Do Kwon has also come under a lot of criticism over the past few months and has been accused of several questionable acts such as allegedly paying out $2.7 billion before the blockchain collapse. He also recently gave an interview for the first time since the Terra collapse, noting that he was "devastated".

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