Founders of the ailing crypto hedge fund Three Arrows Capital (3AC) have explained that the accumulated lending agreements and the unprecedented collapse of the digital asset market are the reasons behind the fall of their platform. They also debunked any misconceptions that they were lavishing money on the back of their broke customers.

The Asian cryptocurrency giant was one of the worst-hit by the harsh cryptocurrency winter that has resulted in the crash of digital market asset prices. 3AC could not meet margin calls in June and they were eventually ordered into liquidation by a British Islands court. 3AC’s fall was considered to be a heavy punch to the cryptosphere since they had some high profile creditors including Blockchain.com and Voyager Digital.

Co-founders Su Zhu and Kyle Davies spoke in-depth about the problems that caused the company’s collapse. In their view, the collapse started with the accommodative lending arrangements and was accelerated by the negative market downturn. Zhu specifically said that Bitcoin’s price drop to $20,000 was the final nail in the coffin for 3AC. He claimed that he and his co-founder did everything possible to prevent the collapse including investing personal funds to no avail.

3AC’s execs were also accused of purchasing a $50 Million yacht just days before 3AC went into bankruptcy but the execs have come out to deny those rumours. Zhu believes that the rumours are part of a smear campaign as he disclosed that the yacht was purchased over a year ago. The co-founders stated that living luxuriously had never been a part of their daily routine. Zhu stated that he cycled to work everyday and his family owned only two residential properties in Singapore. Zhu stated that 3AC’s executives received multiple death threats which forced them to run away from Singapore. He did not however confirm the rumours that they moved to Dubai. He also assured the public that they are in constant communication and collaboration with the relevant Singaporean authorities.