3AC’s Founders Spent $50 Million on Yacht, Bungalow

yacht delivery in italy

The affidavit stated that Su Zhu and Kyle Davis had made a down-payment on the yacht of $50 million, with the yacht being delivered sometime in Italy over the next two months, after which the remaining payment would have to be made.

The co-founders are believed to have paid off borrowed funds, ignoring attempts by the company’s creditors to reach the company.

Zhu buys prestigious bungalow in Singapore

The liquidators said Zhu purchased a “good class” bungalow in Singapore for $48.8 million and is a joint tenant of the property with the co-founder, his wife.

According to the liquidator, “the founders of the clearly insolvent company should not be allowed to deal with the assets of the company.”

Furthermore, the filing states that instead of responding to margin calls from lenders, 3AC continued to trade cryptocurrencies.

$31 million transferred to the company in the Cayman Islands

The fund is believed to have transferred $31 million in stablecoin USDC and $900,000 in USDT on June 14 to Tai Ping Shan Ltd., a Cayman Islands-based company owned by Zhu and Kyle Davis’ partner, Kelly Kelly Chen.

Recently, 3A’s lawyers claimed that founders Su Zhu and Kyle Davis may have fled Singapore and their whereabouts are unknown.

As of April 2022, the firm had more than $3 billion in assets under management, according to 3AC’s bankruptcy filing.

According to the company’s filings, it owes about $3.5 billion to about 27 crypto firms, with its biggest creditor being crypto brokerage Genesis, which loaned $2.3 billion to the fund.

The company’s CEO Michael Morrow said that when 3AC failed to meet the margin call in June, the firm sold its collateral and hedged its downside.

first article