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

article-image

Source: Dall-E

share

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.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Brooklyn, NY

SUN - MON, JUN. 22 - 23, 2025

Blockworks and Cracked Labs are teaming up for the third installment of the Permissionless Hackathon, happening June 22–23, 2025 in Brooklyn, NY. This is a 36-hour IRL builder sprint where developers, designers, and creatives ship real projects solving real problems across […]

recent research

Research

article-image

Bitcoin needs a price, but its magic runs deeper

article-image

Circle had a pretty successful first day of trading, but what’s next for the stablecoin issuer?

article-image

Solana’s USDC caught a boost after being paired with the TRUMP memecoin

article-image

The stablecoin issuer’s successful first day of trading is likely to spur more crypto IPOs, industry watchers say

article-image

Job openings rallied and continuing claims stalled ahead of May’s employment report

article-image

A group of Twitch streamers battle for bitcoin. Will their chats help them?