A British Virgin Islands court has frozen over $1 billion in assets belonging to the founders of Three Arrows Capital (3AC), a prominent crypto hedge fund. Teneo, the company in charge of overseeing 3AC’s closure, has confirmed this move.
According to Teneo, the founders, Su Zhu, Kyle Davies, and Davies’ wife, Kelly Chen, are now unable to access or transfer their substantial assets. This action comes amid 3AC’s financial difficulties, with creditors owed an estimated $3.3 billion.
Teneo claims that the founders contributed to 3AC‘s financial difficulties, prompting the court to freeze their assets. Su Zhu was arrested at Singapore’s airport after Singapore authorities issued a domestic freezing order against him.
As a result, both Zhu and Davies were barred from engaging in financial transactions in Singapore.
Three Arrows Capital, once a leading crypto fund, experienced a downturn in 2022 as a result of poor investments and the broader market crash caused by the Terraform Labs collapse.
3AC, which was originally headquartered in Singapore, declared bankruptcy in the British Virgin Islands, where Teneo accused the founders of refusing to cooperate.
Zhu and Davies, once celebrated figures in the crypto world, are now dealing with a tarnished reputation as a result of risky financial practices.
A Singapore court recently interrogated Zhu, and discussions about his possible release are ongoing. The situation highlights the difficulties that crypto funds face when navigating volatile markets, as well as the potential legal ramifications for their founders.
