British Virgin Isles Court Freezes $1 Billion Assets Belonging To Three Arrows Capital Founders

Three Arrows Capital's Su Zhu Reveals Bullish Stance On Polkadot, Solana, and Avalanche

A British Virgin Islands court has ordered the freeze of assets belonging to Three Arrows Capital (3AC) founders, the crypto hedge fund’s assigned liquidator Teneo Restructuring has revealed.

The global freezing court order prevents co-founders Su Zhu and Kyle Davies, as well as Davies’ wife, Kelly Chen, from moving or selling assets worth up to $1.14 billion.

“The worldwide freezing order has been sought in connection with claims that are being pursued by the liquidators that allege, amongst other things, that the founders should be held responsible for causing 3AC’s position to deteriorate by an amount that is equivalent to the value of the freezing orders sought,” Teneo said.

Zhu was apprehended in September for failing to follow a court order directing him to account for his activities as 3AC’s co-founder and investment manager. In September, he was put behind bars in Singapore for failing to cooperate with the investigation. He is set to be freed this month for apparent good behaviour.

Overexposure To Do Kwon’s Terra

3AC imploded after accumulating millions of dollars in losses on the back of the collapse of Terra-Luna in May 2022, as cryptocurrency exchanges liquidated the distressed company’s positions after it failed to meet margin calls. The Singapore-headquartered, decade-old hedge fund was ordered to liquidate in June 2022 before filing for Chapter 15 bankruptcy the next month.

Teneo pointed out that 3AC owes approximately $3.3 billion to creditors in the aftermath of its ignominious meltdown. The liquidator also detailed that on Wednesday, a Singapore court granted a domestic freezing order on Zhu and Davies’ assets. It’s been a long, “intensive effort” trying to get the duo to cooperate, Teneo posited.

Davies remains at large despite reportedly receiving an imprisonment committal order. He and Zhu were slapped with a nine-year ban preventing them from conducting regulated activities or acting as chief executives at any financial company in Singapore.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Most Popular

InstaCoin.News covers Fintech, Blockchain and Bitcoin bringing you the latest news and analyses on the future of money.

Copyright © InstaCoinNews

To Top