3AC liquidator Teneo said the Singapore court had also issued orders freezing the assets of Su Zhu and Kyle Davies.
A court in the British Virgin Islands has issued an order freezing approximately $1 billion in assets belonging to the founder of cryptocurrency hedge fund Three Arrows Capital (3AC). The liquidator, Teneo, has confirmed the development to Bloomberg.
3AC founders unable to transfer their assets
Liquidator Teneo said in an email that the court had issued an order prohibiting co-founders Su Zhu and Kyle Davies and Davies' wife Kelly Chen from transferring or selling assets worth up to $1.14 billion. Liquidators estimate creditors are owed about $3.3 billion.
Teneo said:
“The global freezing order is made in connection with claims brought by the liquidators alleging that the founders are liable for conduct that resulted in 3AC being in a deteriorated state, in an amount equal to the value of 3AC.”
According to Teneo, the disclosure follows a domestic freezing order issued by a Singapore court. The development comes a day after Su Zhu was arrested at Singapore Changi Airport in September while trying to leave the country. Singapore has banned Su Zhu and Kyle Davies, prohibiting them from engaging in any regulated activities in the country.
The Fall of Three Arrows Capital (3AC)
Amid a series of investment misfortunes, Three Arrows, once a prominent player in the cryptocurrency hedge fund space, has experienced a turbulent decline in 2022. Amid the broader cryptocurrency market decline and wave after wave of collapse in the industry, Three Arrows Capital (3AC) has been unleashed in the collapse wave.
The hedge fund, which previously operated out of Singapore, has sought refuge from bankruptcy proceedings in the British Virgin Islands. Teneo, appointed by the BVI court, has filed charges of non-cooperation against founders Su Zhu and Kyle Davies.
Su Zhu and Kyle Davies, once popular figures during the bullish phase of the cryptocurrency market, have seen their popularity and wealth plummet following revelations about risky practices. Su Zhu was questioned by a Singapore court last week, and negotiations for his possible release are under scrutiny. #3AC #资产冻结
