A British Virgin Islands court freezes assets of Three Arrows Capital founders
A British Virgin Islands court has ordered the freezing of up to $1.1 billion worth of assets owned by Su Zhu and Kyle Davies, the founders of defunct crypto hedge fund Three Arrows Capital, as well as Davies’ wife. The order was made on Dec. 18 to prevent the three individuals from dealing with their assets worldwide, according to a statement from the company’s liquidator Teneo. The liquidators are pursuing claims that hold the founders responsible for causing Three Arrows Capital’s position to deteriorate by an amount equivalent to the value of the freezing orders sought.
Singapore court also grants domestic freezing order
In addition to the BVI court order, a Singapore court has also granted a domestic freezing order against Zhu and Davies. This development follows Zhu’s arrest at Singapore’s Changi airport in September and his subsequent questioning in a Singapore court last week. Teneo is seeking to reclaim $3.5 billion for creditors of Three Arrows Capital.
Three Arrows Capital filed for bankruptcy in July 2022
Three Arrows Capital filed for bankruptcy in July 2022 after the collapse of the Terra ecosystem caused turmoil in the crypto markets. The firm owed creditors at least $3.5 billion, according to documents filed at the time.
Hot Take: Frozen Assets and Legal Troubles for Three Arrows Capital Founders
A British Virgin Islands court has frozen assets worth up to $1.1 billion belonging to Su Zhu, Kyle Davies, and Davies’ wife, founders of defunct crypto hedge fund Three Arrows Capital. The freezing orders were sought by the liquidators who hold the founders responsible for causing significant deterioration in Three Arrows Capital’s position. In addition to the BVI court order, a Singapore court has also granted a domestic freezing order. This legal development follows Zhu’s arrest and questioning in Singapore. Three Arrows Capital filed for bankruptcy in July 2022, owing creditors billions of dollars. The situation highlights the challenges faced by crypto hedge funds and the potential legal consequences for their founders.
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