Three Arrows co-founder Su Zhu has reportedly reappeared in Thailand to deliver an affidavit in person, placing doubts on claims made by the crypto hedge fund’s liquidators.

Three Arrow co-founder Su Zhu delivered an affidavit in person in Bangkok on August 19, according to a «Bloomberg» report citing a notarized document. 

Within the documents, Zhu placed doubts on the claims by liquidators to Singapore's High Court about Three Arrows' structure. He described the liquidator’s representations about the hedge fund's operations, relationships, and timelines as «inaccurate and misleading».

Three Arrows Structure

In June, a British Virgin Islands court appointed advisory firm Teneo to liquidate Three Arrows’ assets. The liquidator has accused Zhu and fellow co-founder Kyle Davies of failing to cooperate, claiming the two had provided «rather selective and piecemeal disclosures» about the hedge fund’s assets. Separately, a Singapore court formally granted a petition by Teneo last week to recognize the liquidation order in the city-state.

But Zhu claims that Three Arrows may not be able to fully comply with liquidators' information demands due to its structure. 

According to his affidavit, Three Arrows Capital Pte Ltd (TACPL) first became a registered fund manager in Singapore in or around August 2013 and was licensed there until July 31 last year. The entity served as a master fund for two feeder funds registered in the British Virgin Islands and Delaware before the emergence of a fourth BVI-domiciled entity which Zhu said has operated as the investment manager of the two funds since around August 2021. 

Jail Fears

In addition to claims of misrepresentation, Zhu also underlined concerns about the «potentially draconian consequences arising from the liquidators’ exercise of their wide powers». This includes the possibility of fines and imprisonment for charges of contempt of court against TACPL’s officers and representatives which include Zhu himself. 

The delivery of Zhu’s affidavit marks a turn of events after Teneo reportedly said last month that the whereabouts of Three Arrows co-founders were unknown. The advisory firm described the Zoom call with Davies and Zhu in early July as unusual with the two keeping their microphones and video cameras off throughout the inquiry.