Three Arrows Capital Insolvency Leaked

A leaked legal document lists 3AC’s creditor claims and highlights Su Zhu’s and Kyle Davies’s reckless spending, including a megayacht paid for with a loan.

Megayachts lined up in Monaco

A leaked affidavit from a court in the British Virgin Islands, which counts 1157 pages, both summed up what the Three Arrows Capital insolvency saga already revealed, and shed light on new aspects of the failure that resulted in debilitating contagion across crypto markets.

The document was filed by 3AC’s joint liquidators (JLs) Russell Crumpler and Christopher Farmer of Teneo Limited, in a bid to validate the liquidation proceedings in the eyes of Singapore courts. “It is highly probable that the Company has assets in Singapore,” the affidavit said. Under the insolvency proceedings, the JLs “are empowered to take full control of all of 3AC’s affairs, and the powers of 3AC’s directors have completely ceased,” Teneo noted in a Q&A document.

Among the assets the liquidators have reason to be hoping for if their application is successful are Su Zhu’s two Singapore mansions. One of them was purchased under the name of Su Zhu’s wife for $20 million in 2020. The other, located in Yarwood and worth $35 million, was reportedly put up for sale.

Zhu seeks to sell it “fast” to prevent it from being seized by liquidators, the affidavit argued, quoting a text message that’s circulated among Singapore real estate agents regarding a Yarwood property of the same size and purchasing price as Zhu’s.

Su Zhu's $35 million mansion in Singapore.
Su Zhu's $35 million mansion in Singapore. Source: Google Street View (photo prior to Zhu's purchase).

Another asset that could be liquidated is a $50 million megayacht scheduled to be delivered to a port in Italy sometime in the next two months, at which point the outstanding payment to the manufacturer will be due. “There has been speculation that the yacht was purchased with borrowed funds,” the affidavit added.

3AC reportedly owes 27 companies $3.5 billion. The affidavit lists some of those creditors, including the largest, Genesis, which loaned 3AC $2.3 billion.

Separately, 3AC creditors formed a committee tasked with supporting the “interests of all creditors through each stage of the insolvency” in the British Virgin Islands. The members, elected by all creditors in a vote, are Digital Currency Group, Voyager, CoinList,, and Matrixport.