Three Arrows Capital co-founder Zhu Su today expressed his dissatisfaction with FTX founder SBF, accusing FTX of illegally selling $1.53 billion in assets from Three Arrows Capital to repay FTX’s debts, ultimately leading to the bankruptcy of Three Arrows Capital. SBF should not be pardoned and should be sentenced to 250 years in prison.
(Background: SBF’s latest prison interview: I gave the same amount of money to the Republican Party, but the Democratic Party did not come to help; Diddy said he was “very nice” to me)
(Background Supplement: The court ruled that FTX must expand compensation to Three Arrows Capital by over $1.5 billion. Will Zhu Su become a major winner with substantial SOL and AI company equity?)
Three Arrows Capital was once one of the most important hedge funds in the cryptocurrency field, managing assets worth billions of dollars at its peak. However, in June 2022, Three Arrows Capital fell into bankruptcy due to the collapse of Luna, excessive leverage, and insolvency.
With the bankruptcy of 3AC, the assets of 3AC founders Zhu Su, Kyle Davies, and their wives amounting to $1.14 billion were frozen by the British Virgin Islands court. Zhu Su and Kyle Davies were both sentenced to four months in prison (Zhu Su has served his time and been released, while Kyle Davies has left Singapore and has not yet served his sentence).
Initially, Three Arrows Capital filed a $120 million claim against FTX in June 2023, which later expanded to include accusations of default, unjust enrichment, and breach of fiduciary duty. After a lengthy legal battle, a U.S. bankruptcy court recently ruled that Three Arrows Capital could expand its claim against FTX’s bankrupt assets to $1.53 billion.
Court documents show that as of June 12, 2022, 3AC held $1.53 billion in assets with FTX, but within the next two days, these assets were used to repay $1.5 billion of FTX’s debts. The FTX liquidation team initially attempted to block the expansion of the claim, arguing that the timing was inappropriate and lacked legal basis. However, the court ultimately determined that 3AC had the right to make additional requests, asserting that FTX itself had delayed in providing financial records, hindering 3AC’s investigation.
It is noteworthy that to this day, Zhu Su still seems to hold a grudge against FTX. Today, FTX creditor MBottjer tweeted that 3AC requested the bankruptcy court to allow its claim against FTX to increase from $120 million to $1.53 billion, citing that according to 3AC’s statement to the court, 3AC recently discovered evidence indicating that FTX liquidated approximately $1.53 billion in assets just two weeks before 3AC entered the bankruptcy process, far exceeding the initially claimed $120 million.
MBottjer mentioned that 3AC stated it could not have discovered this situation earlier because FTX had already entered bankruptcy and held key data, and 3AC only obtained sufficient details after the official claim deadline had passed.
In response, Zhu Su stated that FTX indeed violated regulations by selling $1.53 billion in assets from Three Arrows Capital and converting them into dollars in May 2022, and these assets were not lent to FTX, which had no right to liquidate them. He angrily asserted that SBF, who has already been sentenced to 25 years, should serve a longer sentence:
“No pardon for SBF, he should be sentenced to 250 years in prison.”
“Yeah they basically sold huge % of the coins we had on FTX into dollars, in May 2022. They had no right to, these were not ‘lent’ to FTX. No pardon for sbf, lock him up 250 yrs.”
In fact, Zhu Su has long harbored discontent towards SBF. After the FTX collapse, he publicly accused SBF in December 2022 of being the mastermind behind the downfall of 3AC. At that time, SBF categorically denied the allegations and claimed there was no evidence to support them. Zhu Su retorted that the U.S. Department of Justice would uncover the truth.
“How would you know? Thought you claimed you aren’t aware of what happens at Alameda? It’s OK we can let DoJ decide.”
