Court Freezes Over $1Bn in Assets of Three Arrows Capital Founders Amid Bankruptcy Saga
Summary:
Singapore-based cryptocurrency hedge fund, Three Arrows Capital (3AC), faces a continued court freeze on over a billion dollars of its founders' assets, including those of Davies' spouse, Kelly Chen. The freeze follows allegations by 3AC's liquidator, Teneo, that 3AC founders Su Zhu and Kyle Davies had caused the firm's financial position to deteriorate. Teneo estimates that creditors are owed about $3.3 billion post the fund's 2022 collapse. Zhu is currently in custody while Davies is reportedly evading capture. Both have been banned from regulated activities in Singapore for nine years.
The debacle of Singapore's cryptocurrency hedge fund, Three Arrows Capital (3AC), persists with additional founders' assets worth over a billion dollars being put on hold by a court. Founders of 3AC, Su Zhu and Kyle Davies, have been prohibited from selling or transferring assets valued up to $1.14 billion by a British Virgin Islands court, as stated by Teneo, 3AC’s liquidator as of December 21 report by Bloomberg. The asset freeze has also reportedly affected assets held by Davies' spouse, Kelly Chen. Teneo approximates that in the fallout of 3AC's meltdown in 2022, creditors are owed around $3.3 billion.
Teneo has explained that they sought the globe-spanning freeze due to allegations that the founders precipitated a similar amount of depreciation in 3AC's financial position as the value of the frozen assets. Further constraints come in the form of a domestic freezing order from the Singapore Court applied to the founders of 3AC.
Teneo has yet to respond to requests for comments from Cointelegraph. 3AC, established in 2012, was a leading player in the global crypto hedge fund arena until it was unable to satisfy margin calls from its lenders and went bankrupt amid the 2022 cryptocurrency bear market. Zhu was taken into custody in Singapore in September 2023 when he supposedly tried to leave the country after receiving a four-month imprisonment sentence from a local court. Meanwhile, Davies, who also received a jail term committal order, is reportedly still on the run.
Zhu and Davies have also been barred from conducting regulated activities in Singapore for a span of nine years by the local central bank.
Published At
12/21/2023 11:17:08 AM
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