Recent developments have emerged regarding Three Arrows Capital, following previous reports about the potential release of co-founder Su Zhu. A court in the British Virgin Islands has frozen approximately $1 billion worth of assets associated with the cryptocurrency hedge fund’s founders.
The liquidation firm Teneo, via email, announced that the court has issued an order preventing not only Su Zhu and Kyle Davies, but also Davies’s wife Kelly Chen, from transferring or selling assets valued at $1.14 billion. The firm also disclosed that the total debt to creditors is around $3.3 billion.
Three Arrows, once among the top crypto-focused hedge funds, collapsed in 2022 following a series of irreversible poor decisions. This failure was part of a broader crypto market crash and subsequent collapses within the industry.
Teneo stated that the global freezing order was sought in connection with claims that the founders should be held responsible for causing the devaluation of Three Arrows Capital’s (3AC) position to the extent of the value of the sought freezing orders.
The announcement from Teneo came just one day after a regional freezing order was issued by the Singapore Court. This followed the September incident where Zhu was arrested at Singapore’s Changi Airport while attempting to leave the country. Singapore courts have also banned Zhu and Davies from conducting any business activities in Singapore.