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The cryptocurrency world has been hit with a new feud, as two of the industry's most notorious figures, Su Zhu and Arthur Hayes, are embroiled in a bitter spat.
The latest development in this ongoing feud is that Zhu, the co-founder of the now-defunct Three Arrows Capital (3AC), has obtained a restraining order from a Singapore court against Hayes, the co-founder of BitMEX, to prevent him from "using any insulting or abusive communication that would cause Zhu alarm, harassment, or distress."
Background: The Billion-Dollar Collapse of 3AC
If you're not up-to-date on the history of these two titans of the cryptocurrency industry, let's take a quick refresher course. Last year, 3AC was ordered into liquidation by a British Virgin Islands court due to challenges it faced amid the first wave of the 2022 crypto winter caused by the Terra-Luna ecosystem collapse.
3AC's collapse sent ripple effects through the industry, leaving the hedge fund owing its creditors more than $1 billion. Zhu and his partner, Kyle Davies, disappeared after 3AC's failure, only to resurface several months later in a Bloomberg interview announcing the launch of OPNX, an exchange for trading bankruptcy claims.
Hayes vs. Zhu: The Twitter War
Fast forward to today, and we have Hayes relentlessly demanding that Zhu and Davies repay a $6 million debt that stemmed from the collapse of 3AC. In a series of tweets, Hayes criticized and mocked the 3AC co-founders' attempts to raise funds for their new platform.
He previously said that "a little birdie" told him that the duo had raised big money from a sovereign wealth fund in Bahrain.
A little birdie told me @zhusu & @KyleLDavies raised big money from Bahrain SWF. They are trading via Tai Ping Shan. Be Warned. I want my fucking money.
— Arthur Hayes (@CryptoHayes) April 6, 2023
Hayes even mocked Zhu and Davies in their Bloomberg interview, highlighting a section where Zhu said they failed to realize that Luna could fall to zero in a matter of days and the effect that such would have on the crypto industry. Hayes ridiculed them for not reading the asset's whitepaper.
Awe that's sweet, is that your way of using symbolism to represent the $6 million you owe me? 1 Oyster = $1 million ... https://t.co/ehWJ4wUfXB
— Arthur Hayes (@CryptoHayes) May 2, 2023
Zhu Strikes Back with Restraining Order
Apparently having enough of Hayes' jabs, Zhu has filed a restraining order against him in a Singaporean court, Coindesk reported.
The order prohibits Hayes from using any threatening, abusive, or insulting words or communication that would cause Zhu harassment, alarm, or distress. Harassment Court Judge Sandra Looi Ai Lin went a step further and banned Hayes from communicating with Zhu by any means and publishing any identity information. The order can even be served to Hayes via his Twitter account.
What's Next for the Crypto Titans?
The crypto world is abuzz with speculation about what will happen next. Will Hayes back down and cease his attacks on Zhu? Will Zhu and Davies be able to repay their debt to Hayes and move on with their new venture, OPNX?
While investors who have been burned by 3AC's collapse and subsequent fallout have been calling for justice against the company's co-founders, Hayes himself is no stranger to controversy - he avoided a prison sentence with six months of home detention after pleading guilty to U.S. federal charges of failing to implement anti-money laundering (AML) checks at his exchange.
One thing is for sure - this feud has certainly added some drama to the already tumultuous world of cryptocurrencies.
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