Su Zhu spoke out again after nearly a month. What did he say?
Su Zhu accused the liquidator in the email of failing to fulfill the acquisition offer, resulting in the expiration of Starkware token equity certification on July 5, which caused the company to incur "significant losses."Author: Zhuan Qing, Chain Catcher
Nearly a month later, Su Zhu finally spoke out on Twitter, posting two screenshots of emails sent by his legal advisor to the legal representatives of the Three Arrows liquidators, claiming that the liquidators ignored their willingness to cooperate and instead reported their so-called non-cooperation to the U.S. court, thus "enticing" them.
The matter dates back to July 8. Last Friday, the Three Arrows liquidators submitted court documents in New York, accusing Three Arrows of not cooperating with the liquidation process, stating that they "have not begun to cooperate in any meaningful way with the litigation process," and noted that during the initial Zoom call, individuals claiming to be Su Zhu and Kyle were present, but their video and audio were turned off, and they did not respond directly to the questions posed to them, instead having Three Arrows' lawyer respond on their behalf. Additionally, the court documents indicated that creditor lawyers who visited the Three Arrows Group's Singapore office found it abandoned and stated in legal documents that Su Zhu had "gone missing."
As a result, the Three Arrows liquidators applied for an emergency hearing for Three Arrows Capital creditors to be held on Tuesday morning (July 12) local time in New York, which has been approved by the court. Creditors are seeking to freeze the assets of Three Arrows. They first requested the court to compel the founders of Three Arrows to disclose all fund assets.
Today, in response to this accusation, one of the emails disclosed by Su Zhu on Twitter aimed to accuse the liquidators of "enticing" behavior. Three Arrows' legal advisor pointed out in the email that initially, the liquidators' Singapore lawyer had "in good faith" inquired and "constructively" discussed whether to proceed with the liquidation process and communication on a "non-obstructive" basis, but in fact, the other party was already prepared to file an application (referring to the liquidators' complaint to the U.S. court about Three Arrows' non-cooperation), "in reality, they wanted to entice our client."
Three Arrows' legal advisor also stated that the reason Su Zhu and Kyle chose to "turn off" their video and audio during Friday's Zoom meeting was that staff from Three Arrows, including Su Zhu, and their families were facing threats of personal violence and wanted to focus on preparing for some inquiries from the Monetary Authority of Singapore.
Based on this, Three Arrows will "take necessary measures to seek appropriate sanctions" and stated that Su Zhu and Kyle Davies would not attend the court hearing scheduled for 9 PM tonight (Singapore time) in New York (via teleconference).
In response to the allegations of "non-cooperation" with the liquidation process, the email also attached detailed information about the company assets that Three Arrows could compile "in a short time" and stated that Three Arrows would continue to provide relevant asset information.
Additionally, in another email disclosed by Su Zhu, it accused the liquidators of failing to fulfill the acquisition offer, resulting in the Starkware token equity certification expiring on July 5, which caused the company to incur "significant losses." This accusation has been confirmed by the liquidators' legal advisor during the July 8 conference call. It is reported that last November, Three Arrows participated in StarkWare's $50 million Series C financing, while StarkWare has not publicly issued tokens.
In this email, Three Arrows requested the other party to disclose the following information:
- When did the liquidators become aware of the StarkWare equity confirmation notice;
- What steps did the liquidators take regarding StarkWare after learning about StarkWare's actions;
- What steps did the liquidators take to determine the realizable value of the StarkWare equity confirmation;
- Did the liquidators contact StarkWare before July 5, 2022, which is the deadline for StarkWare's actions.
Although it seems that Su Zhu's counterattack and response allowed Three Arrows to "escape" tonight's hearing, Three Arrows co-founder Kyle Davies has been summoned to provide testimony and submit documents via video conference on July 19. The positive aspect is that as long as Su Zhu is still speaking out, it proves he is still trying to resolve the issue, and the Three Arrows incident has not yet reached a conclusion. Please continue to follow for further updates.
