BitMEX Co-founder vs 3AC: Restraining Order & the $6M Debt Controversy in Crypto World

Intricate legal battle, crypto co-founders' clash, restraining order, $6M debt controversy, futuristic courtroom, somber mood, chiaroscuro lighting, contrasting personalities, turbulent gray sky, digital currency symbols, ethical standards reminder, accountability, trust & stability theme, precedent-setting outcome.

In a recent development, Su Zhu, the co-founder of the now-defunct crypto hedge fund Three Arrows Capital (3AC), has obtained a restraining order against Arthur Hayes, co-founder of the BitMEX trading platform. The Singapore court order, dated May 5, prevents Hayes from using “threatening, abusive, or insulting words” and making any such communication that would cause Zhu harassment or distress.

The crux of this case revolves around Hayes claiming that he is owed $6 million after the collapse of the fund last year. He has been vocal about this issue, especially on Twitter, where he has sent multiple tweets directed at Zhu and his 3AC partner, Kyle Davies.

On one hand, Hayes and Zhu have both emerged as controversial figures in the crypto space. Zhu, in particular, has faced scrutiny following the ripple effects caused by the collapse of 3AC in the industry. On the other hand, Hayes received a six-month home detention sentence after pleading guilty to not implementing anti-money laundering (AML) checks at his exchange in February 2022.

As the case unfolds, court filings have shown that 3AC owes over $1 billion in individual claims. Zhu and Davies have tried to move on from this debacle by launching OPNX, a platform that allows investors to trade bankruptcy claims for companies like FTX and CoinFLEX.

However, their past still haunts them as Hayes critiques their attempts at raising funds for the new platform through tweets. In one instance, he pointed towards Zhu and Davies receiving “big money” from a Bahraini sovereign wealth fund and subsequently demanded his money back.

Meanwhile, Hayes is focusing on his new crypto fund, Maelstrom. The direction of this case remains uncertain, but it highlights the significance of transparency and accountability in the crypto space. With Hayes and Zhu caught in this legal battle, the restraining order serves as a reminder of the importance of maintaining ethical standards in communication and business dealings.

As the crypto industry continues to grow and evolve, it is crucial to consider the impacts of such legal battles and controversies to ensure further trust and stability. Ultimately, the outcome of this case will set a precedent for future disputes and call attention to the necessity of proper checks and balances across the entire crypto ecosystem.

CoinDesk, a leading news platform for cryptocurrency, digital assets, and the future of money, continues to maintain strict editorial policies and high journalistic standards for the information they publish.

Source: Coindesk

Sponsored ad