A court in the British Virgin Islands froze $1 billion in assets of the founders of Three Arrows Capital (3AC).
A court in the British Virgin Islands froze $1 billion in assets of the founders of collapsed crypto hedge fund, Three Arrows Capital. A court order prevents co-founders Su Zhu and Kyle Davies, as well as Davies’ wife, from transferring or selling assets worth over $1 billion.
3AC Owes Creditors Around $3.3 Billion
Bloomberg reports that 3AC’s liquidators, Teneo, said over $1 billion in assets belonging to Zhu and Davies were frozen by a court in the British Virgin Islands. Davies, his wife Kelly Chen, and Zhu are prevented from selling or transferring assets worth up to $1.14 billion. Teneo added that 3AC owes its creditors an estimated $3.3 billion.
In an emailed statement to Bloomberg, Teneo said:
“The worldwide freezing order has been sought in connection with claims that are being pursued by the liquidators that allege, amongst other things, that the founders should be held responsible for causing 3AC’s position to deteriorate by an amount that is equivalent to the value of the freezing orders sought.”
The company was once one of the largest crypto hedge funds but collapsed in 2022 after a series of bad calls and part of the crypto winter. In June 2022, 3AC was liquidated after it failed to meet margin calls from several lenders. The firm announced it fell into liquidation after it defaulted on numerous large loans, including Voyager Capital, BlockFi, and Genesis.
Zhu and Davies Banned from Regulated Activities in Singapore
3AC operated in Singapore but filed for bankruptcy in the British Virgin Islands. The Monetary Authority of Singapore (MAS) banned Davies and Zhu from participating in regulated activities or serving as top executives at a financial firm in the country for nine years.
In September, Su Zhu was arrested in Singapore and is expected to serve a four-month prison sentence. Zhu was apprehended after Teneo obtained a court order after Zhu failed to cooperate with the liquidators.
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Source: https://cryptodaily.co.uk/2023/12/bvi-court-freezes-1-billion-of-three-arrows-capital-founders-assets