In response to allegations of Three Arrows Capital (3AC) still engaging in significant trading through its OTC desk, Tai Ping Shan (TPS) issued a clarification statement on Twitter. The statement stated that TPS is an independent entity with separate management and operations.
3AC apparently managed TPS Capital’s over-the-counter trading division. The company was originally referred to as “the official OTC service of Three Arrows Capital” on LinkedIn.
According to the statement, “TPS is an independent legal entity and its operations are separate and distinct from those of 3AC. TPS is run by a separate management team and operates its main count business without the involvement of 3AC or its principals.”
According to TPS Capital’s registration documentation, its ownership is divided between Tai Ping Shan Ltd., which is registered in the Cayman Islands, Three Lucky Charms Ltd., which is registered in the BVI, and TPS Research, which is registered in the BVI.
Although BVI law states that a company’s directors’ names are confidential, the name Three Lucky Charms sounds a lot like Three Arrows Capital, whose three principals are Su Zhu, Kyle Davies, and an unidentified third person.
And now TPS claims that Three Arrows Capital was only a client of theirs and that their cooperation was primarily in a “referral capacity”, with TPS acting as an “agent” or “intermediary” in financial dealings.
Su Zhu and Kyle Davis, co-founders of 3AC, were listed as having indirect stock interests in TPS by TPS Capital. Although the company clarified that they were “passive investors” who had no direct control over the company’s day-to-day operations.
TPS claims that, at 3AC’s request, it helped 3AC in coordinating loan agreements with several lenders.
“Our most recent dealing with 3AC was limited to acting as an agent of loans between lenders and 3AC.”
It was “blindsided” by Three Arrows Capital’s demise as well, and it is currently one of Three Arrows Capital’s creditors.
The beleaguered crypto hedge fund, Three Arrows Capital, filed for Chapter 15 bankruptcy in New York, which apparently didn’t come as a surprise for the crypto community.