Top Cryptocurrency News: 3AC founders disclose ties to Terra founder, blame overconfidence for the collapse

After being missing for five weeks, the founders of the scandal-plagued cryptocurrency hedge firm Three Arrow Capital (3AC), which declared bankruptcy in the first week of July, have finally resurfaced.

Su Zhu and Kyle Davies, the two founders of the cryptocurrency hedge fund, acknowledged in an interview with sources that a string of bad decisions that should have been avoided was caused by an overconfidence that resulted from a multiyear bull market in which lenders saw their values rise as a result of financing companies like theirs.

In addition, Zhu acknowledged their connection with Terra founder Do Kwon and expressed their optimism for the company's future success. He acknowledged that the company's proximity to Terra caused them to ignore several warning signs regarding the company, which ultimately resulted in their $500 million worth of investment going to zero.

The LUNA (Now known as Luna Classic LUNAC) investment, according to the company's two founders, was unquestionably a setback for the company. However, the true problem started when Bitcoin (BTC) plummeted below $20,000 and the company was unable to get additional credit. Zhu asserted that after LUNA's demise, operations continued as normal and provided the following justification:

“At that time, we kept running operations as usual. However, following that day, when Bitcoin, you know, dropped from $30,000 to $20,000, that, it was incredibly difficult for us. And that ended up being sort of the final nail in the coffin.”

When questioned about their locations and the reason why they are hiding, the founders cited a slew of death threats as the reason. The duo stated they were relocating to Dubai but wouldn't say where they were at the moment.

Read also: 3AC liquidators seek time and access to Singapore headquarters