British Virgin Islands Court Freezes $1 Billion in Assets of Three Arrows Capital Founders
A court in the British Virgin Islands has issued an order to freeze assets worth over $1 billion belonging to the founders of the defunct crypto hedge fund Three Arrows Capital. The freeze order also applies to Kyle Davies’ wife, Kelly Chen, preventing them from transferring or selling their digital assets.
Assets Frozen Amid $3 Billion Owed to Creditors
The court’s decision comes as the liquidator of Three Arrows Capital, Teneo, estimates the frozen assets to be worth $1.14 billion. Creditors are owed more than $3 billion. The founders, Su Zhu and Kyle Davies, have been accused of obstructing the liquidation process by filing for bankruptcy protection and evading subpoenas.
Attempts to Frustrate Liquidation Process
In July 2022, 3AC’s co-founders filed for Chapter 15 bankruptcy protection to block the liquidator and creditors from seizing the firm’s assets in the United States. The liquidator has also requested a fine of $10,000 per day for Kyle Davies’ non-compliance with subpoenas. The freezing order aims to hold the founders responsible for the alleged deterioration of 3AC’s position.
One Founder Arrested, Another in Hiding
Since the collapse of 3AC, Su Zhu and Kyle Davies have faced legal consequences. Su Zhu was arrested in Singapore and received a four-month jail sentence in September. Kyle Davies remains in hiding.
Hot Take: Court Freezes Assets of Three Arrows Capital Founders Amid Ongoing Legal Battles
A court in the British Virgin Islands has ordered the freezing of $1 billion in assets belonging to the founders of Three Arrows Capital. The freeze order, which includes the assets of Kyle Davies’ wife, comes amid allegations of obstructing the liquidation process and evading subpoenas. With creditors owed over $3 billion, the liquidator seeks to hold the founders responsible for the alleged deterioration of the firm’s position. While one founder has already faced legal consequences, the freezing of assets adds to the ongoing legal battles faced by Three Arrows Capital co-founders.
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