Note that conflicts in the cryptocurrency industry are not uncommon. For example, last week, digital asset lovers watched a minor misunderstanding between Binance cryptocurrency exchange chief Changpen Zhao and Tron blockchain project founder Justin Sun. This was caused by the latter’s transfer of $56 million in TUSD steiblockchain to Binance’s trading platform.

At the same time, preparations were underway to launch a cryptocurrency called SUI on the Binance Launchpad platform, which could be accessed by ordinary exchange users. To do so, they needed to block BNB or the aforementioned TUSD. Accordingly, the higher the blockchain amount, the higher the SUI coin accrual would have to be.

Changpen Zhao has publicly noted that this activity is for regular investors, not so-called whales. Therefore, any attempts by Justin to make money from the longchip will lead to zero results.

San was quick enough to come forward and blamed the situation on an unnamed employee who was allegedly unaware that the money could not be used for farming. Justin also apologised to Chanpen and returned all the bonuses received. That was the end of the situation.

What the BitMEX founder is being sued for

The court order notes that Hayes is prohibited from expressing “threatening, abusive or insulting remarks” to the complainant. In addition, the former BitMEX executive must not publish any statements that would cause “alarm or mental distress” to Zhu.

This is a rather strange statement given the merits of Suu Zhu. Recall that cryptocurrency fund Three Arrows Capital once managed billions of dollars worth of crypto assets with other people's funds. However, their investment model for some reason did not take into account hedging, i.e. opening positions to protect capital. The market crash of May 2022 eventually led to 3AC liquidating trading positions, losing money and incurring debts to others in the digital asset industry. That said, Suu Kyu, along with his colleague Kyle Davies, remain unaccountable for their sins.

The news quickly gained publicity in the crypto investor community because of Suu Joo himself. As we have already noted, he and his business partner Kyle Davies are responsible for the collapse of one of the industry’s biggest crypto funds last year. In turn, the collapse of 3AC caused another collapse in the value of Bitcoin, after which most cryptocurrency fans have no respect for Zhu.

Can Arthur Hayes’ public “statements” be seen as threats? Here, for example, is one of his recent tweets – in which Arthur commented on a photo of Davis in a restaurant with six oysters on the table in front of him. He noted that it was an allegory for the “six million owed to him”.

The 3AC owes its customers and creditors as much as one billion dollars. That said, Zhu and Davies are now busy launching OPNX, a cryptocurrency exchange and platform that allows investors to trade FTX and CoinFLEX bankruptcy claims. In the immediate aftermath of the 3AC collapse, the fund’s co-founders stayed out of touch for a long time and only appeared in a Bloomberg interview in July, which Hayes also mocked on Twitter.

Kyle Davies is currently being sought by authorities in New York, as the latter is unwilling to appear in court. According to New York Federal Court officials in February 2023, Davis has ignored the subpoena, failed to provide financial documents on the activities of crypto fund Three Arrows Capital, and in addition manages to “unscrupulously” promote his new crypto platforms.

Where exactly he is located is unknown. In November 2022, CNBC asked Kyle if he lives in Bali. The motivation for this choice may be that Indonesia is one of seven countries that will not extradite Davis to the US. Here’s the relevant video, and the right part starts at 3:35.

According to CoinDesk's sources, Hayes' background is not without black spots either. In particular, he was sentenced to six months of house arrest by court order in February 2022. Arthur was accused of failing to comply with anti-money laundering standards on his stock exchange.

Anyway, if Zhu and Davies do owe him money, asking the former in court to stop “harassment” by Hayes looks ridiculous. Well, the former representatives of Three Arrows Capital need to think about compensating various companies rather than protecting their own name on the internet.


We think this kind of activity by former Three Arrows Capital crypto fund managers deserves to be condemned. Still, for some reason they decided to launch OPNX crypto platform, even though they are still unaccountable for their actions during 3AC. In addition, Suu Kyu, along with Kyle Davies, are ignoring the activity of the courts and are clearly trying to avoid having to go to jail. As can be inferred from their actions, they clearly fear this.


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