3AC Liquidators File $30M Claim for ‘Much Wow’ Super Yacht

Su Zhu and Kyle Davies are publicly tweeting and giving interviews but are refusing to cooperate with their liquidators


Source: Dall-E


Liquidators appointed to oversee Three Arrows Capital’s bankruptcy said the crypto hedge fund’s co-founders Su Zhu and Kyle Davies are still not cooperating for information, forcing them to investigate and recreate records on their own.

They’re instead providing extensive interviews to media outlets, said liquidator Russell Crumpler. He highlighted conversations with Bloomberg and CNBC in a presentation to the bankruptcy court on Friday.

The presentation also included screenshots of tweets posted by Zhu and Davies, made in reference to FTX’s collapse. These were used to indicate both are open to talking publicly, but not to court-appointed liquidators.

Davies appears to have a different version of the story, saying in a tweet on Saturday that the firm’s liquidators refused to engage them “constructively.”

“We invite the liquidators to engage us positively, constructively, and without threats. That would be in the best interest of creditors,” he added.

Liquidators have so far taken over assets worth $35 million in fiat currencies and seized some $2.7 million from forced investment redemptions. They have also taken control of several exchange accounts, over 60 types of digital tokens. The recovered tokens are being held in a custody account under the liquidators’ control.

A more tangible item in liquidators’ crosshairs is the $30 million from the sale of the “Much Wow” super yacht, which was allegedly purchased using borrowed funds from 3AC.

Accounts identified by the liquidators showed multiple transfers were made from the fund to pay for the super yacht. But the shipbuilder ultimately terminated the contract because the final amounts owed weren’t paid, and it was resold. Proceeds from the sale are with the shipbuilder but will be redistributed to the Cayman Islands entity, also called “Much Wow,” to which it was registered. 

Zhu and Davies have so far communicated with liquidators only twice via teleconference, according to the presentation. 

“Founders’ limited cooperation has led to only cursory disclosures of assets and certain agreements,” they said, adding that there has been no complete transfer of records despite a protocol being agreed upon.

Counsel from the law firm representing 3AC’s co-founders didn’t return Blockworks request for comment by press time.

At the time 3AC filed for bankruptcy, the location of either co-founder wasn’t known. It still remains that way, but liquidators alleged in the presentation that they may either be in Bali or the United Arab Emirates — two areas where it’s difficult to impose foreign court orders. 

A Singapore high court has ordered the co-founders to cooperate and provide all books, papers or other records in their possession within a week.

Don’t miss the next big story – join our free daily newsletter.


Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Top Icon.png


Osmosis thrived in H2 2023 on the back of increased DeFi activity deriving from recently launched Cosmos-related projects and better market conditions. With new value accrual mechanisms for the native token, Osmosis is well-positioned to continue its strong performance in 2024.



Though the opposing flow trend is likely to slow over time, industry watchers note, bitcoin fund assets could one day eclipse the $90 billion gold ETF space


Celestia had the first mover advantage. EigenDA has staked ether. What sets Avail apart?


Bitcoin moved 1% higher Monday morning in New York, Matrixport analysts say $62,000 could happen next month


It’s hard to believe right now that crypto — even with all of its flexibility and massive capabilities — could ever be like cash on the internet


Michael Saylor announced Monday morning that MicroStrategy bought 3k more bitcoin after the X account was compromised over the weekend


Plus, Pudgy Penguins grows its brand and a group of Autoglyphs sell for $14.5 million