Court Freezes Assets of Three Arrows Capital Founders

We had recently shared information and details about the release of Su Zhu, co-founder of Three Arrows Capital. The developments did not stop there. According to a news report published in the morning, new developments are occurring on the Three Arrows Capital front.

Court Freezes Assets

According to a statement made by the firm’s liquidator, assets known to belong to the founders of the cryptocurrency hedge fund Three Arrows Capital, with an approximate value of 1 billion dollars, were frozen by a court in the British Virgin Islands.

According to an email statement by the liquidator Teneo, the court not only signed an order preventing founders Su Zhu and Kyle Davies, but also Davies’ wife Kelly Chen from transferring or selling assets valued at 1.14 billion dollars, and also noted that the debt owed to creditors was approximately 3.3 billion dollars.

Once among the top-ranking crypto-centric hedge funds, Three Arrows collapsed in 2022 following a series of irreversible bad moves. This failure was part of a broader crypto crash in the industry and subsequent collapses that followed.

Teneo stated the following:

The worldwide freezing order was sought in connection with claims pursued by the liquidators, which among other things, allege that the founders should be held responsible for causing the deterioration of 3AC’s position to an extent equivalent to the value of the sought freezing orders.

The History of Three Arrows

Three Arrows had previously operated outside of Singapore and filed for bankruptcy in the British Virgin Islands. Teneo, appointed as the liquidator by a British Virgin Islands court, had previously made an accusation and stated that the founders had not made meaningful cooperation.

This announcement came just one day after the Singapore Court issued a regional freezing order, according to Teneo. It also followed Zhu’s arrest in September while trying to leave the country from Singapore’s Changi Airport. The Singapore courts also banned Zhu and Davies from participating in any activities organized in Singapore.