Founders Kyle Davies and Su Zhu are more inclined in restoring their reputation than assisting their own firm’s creditors, the liquidators’ attorney Adam Goldberg stated in bankruptcy court in New York

Liquidators for bankrupt crypto hedge fund Three Arrows Capital (3AC) said on Friday that the firm’s founders are refusing to cooperate with asset recovery attempts, hampering the firm’s ability to return funds to creditors.

Founders Kyle Davies and Su Zhu are more inclined in restoring their reputation than assisting their own firm’s creditors, the liquidators’ attorney Adam Goldberg stated in bankruptcy court in New York. Davies has done interviews recently speaking on the implosion of crypto exchange FTX, trying to shift accountability for Three Arrows’ own failure.

It is interesting to say the least, that the first time we have heard this theory that FTX brought about the collapse of this debtor was after FTX’s own sensational failure, he stated.

Goldberg disagreed with Davies’ claims on Friday, stating that he and Zhu took steps to impede asset recovery efforts.

Someone had “ransacked” hard drives from locked Three Arrows offices before the liquidators gained access, and investigators concluded that the founders had spent firm money on a super-yacht named “Much Wow,” Goldberg added. The liquidators are trying to recover $30 million spent on the yacht, and will bring other recovery actions in the near future, he added.

Davies stated on Saturday in a tweet that he is of the view that the liquidators have not engaged with them “constructively”.

It seems to us that they are intent on making threats against us, and spending a lot of time, and money on continuing court proceedings in several jurisdictions, such as Singapore, the U.S. and the British Virgin Islands, Davies stated on Twitter.

Davies added he is pursuing setting up a round table conversation with creditors to talk through asset recovery and a way forward.

Three Arrows stated in a Friday court filing that the founders are presently based in the UAE and Indonesia, countries not known for cooperating with international court orders.