A Singaporean court has granted a restraining order against Arthur Hayes, the co-founder and former CEO of cryptocurrency exchange BitMEX, from using any insulting or abusive communication that would cause alarm, harassment, or distress to Su Zhu, the co-founder of the now-defunct cryptocurrency hedge fund Three Arrows Capital (3AC).
In the past few months, Hayes has constantly asked Zhu and his 3AC partner Kyle Davies to repay a $6 million debt that stemmed from the hedge fund’s collapse last year. Three Arrows Capital was ordered into liquidation by a British Virgin Islands court in June 2022 due to challenges it faced amid the first wave of the 2022 crypto winter caused by the Terra-Luna ecosystem collapse.
3AC’s demise, which sent ripple effects through the industry, left the hedge fund owing its creditors more than $1 billion. Zhu and Davies disappeared after 3AC’s failure, only to surface several months later in a Bloomberg interview announcing the launch of OPNX, an exchange for trading bankruptcy claims. The duo launched OPNX on April 4, with a planned giveaway of its native token FLEX.
Hayes’ Criticisms and Mockery of Zhu and Davies
In several tweets, Hayes criticized and mocked the 3AC co-founders’ attempts to raise funds for their new platform. He once said that “a little birdie” told him that the duo had raised big money from a sovereign wealth fund in Bahrain. The former BitMEX CEO also diced their interview with Bloomberg while making fun of and criticizing some of their statements.
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 mocked them for not reading the asset’s whitepaper.
Restraining Order Granted
In the restraining order, Harassment Court Judge Sandra Looi Ai Lin prohibited Hayes from communicating with Zhu by any means and publishing any identity information. Henceforth, the BitMEX co-founder is banned from using abusive or threatening words on Zhu.
Judge Lin also ruled that the order could be served to Hayes via his Twitter account. The order prohibits Hayes from using any insulting or abusive communication that would cause Zhu alarm, harassment, or distress. It is unclear if this order extends to any of Hayes’ other social media accounts or communication methods.
Implications of the Restraining Order
This restraining order is a rare move in the cryptocurrency industry, where social media platforms and communication channels are often the primary tools used by industry participants to engage with one another.
This move could be seen as an attempt to protect Zhu’s reputation and well-being after Hayes’ repeated criticisms and mockery. However, it also raises concerns about the extent of regulatory and legal oversight in the cryptocurrency industry, particularly as it pertains to communication and social media.
It remains to be seen how Hayes will respond to the restraining order and whether this move will have any wider implications for communication and social media use within the cryptocurrency industry.