Crypto News- The dramatic saga of the Singapore-based cryptocurrency hedge fund Three Arrows Capital (3AC) has taken an unexpected turn, as a court in the British Virgin Islands has issued a freezing order on assets exceeding a billion dollars belonging to the co-founders, Su Zhu and Kyle Davies.
3AC Founders Hit with Worldwide Asset Freeze Valued at 1 Billion Dollars
In a recent development as of December 21, the court has explicitly prohibited Zhu and Davies from transferring or selling assets valued at up to $1.14 billion. This information was disclosed by the firm’s liquidator, Teneo, and reported by Bloomberg. The impact of the freezing order extends to assets owned by Kyle Davies’ wife, Kelly Chen. According to Teneo, the outstanding debts to 3AC’s creditors stand at an estimated $3.3 billion following the hedge fund’s collapse in 2022.
Teneo, the liquidator, reportedly sought the global freezing order, alleging that the founders should be held accountable for the decline in 3AC’s financial position, an amount equivalent to the value specified in the freezing orders. Notably, the co-founders were already subject to a domestic freezing order from the Singapore Court.
Crypto Hedge Fund Collapse: 3AC Creditors Seek 3.3 Billion Dollars
Founded in 2012, Three Arrows Capital, once a major player in the cryptocurrency hedge fund scene, faced a downfall when it couldn’t meet margin calls from its lenders, ultimately leading to its bankruptcy during the crypto bear market of 2022. Su Zhu, one of the co-founders, was arrested in Singapore in September 2023, reportedly attempting to flee the country after receiving a four-month imprisonment sentence from a local court. Meanwhile, Kyle Davies, also under an imprisonment committal order, is said to remain at large.
Adding to their woes, both Su Zhu and Kyle Davies have been handed a nine-year ban from participating in regulated activities in Singapore by the local central bank. The situation surrounding Three Arrows Capital continues to unravel with each legal twist, painting a vivid picture of the challenges faced by once-prominent figures in the cryptocurrency industry.
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