Business News Report
December 21, 2023

3AC Founder Su Zhu’s $1.144 Billion Worth Assets Frozen by British Virgin Islands Court

In Brief

British Virgin Islands Court ordered to freeze $1.144 billion of Su Zhu’s global assets to prevent 3AC from transferring or selling them.

British Virgin Islands Court Freezes $1.144 Billion ofThree Arrows Capital Co-Founders Assets

The British Virgin Islands court ordered a freeze worth $1.144 billion in global assets belonging to Su Zhu, co-founder of Three Arrows Capital (3AC). A court directive has been issued to prevent co-founders Su Zhu and Kyle Davies, along with Davies’ wife Kelly Chen, from transferring or selling the assets.

The current estimate suggests that creditors are owed approximately $3.3 billion.

Once a major crypto-native hedge fund, Three Arrows experienced a collapse in 2022 due to a series of unfavorable investments, contributing to the broader downturn and numerous failures in the crypto sector.

Having operated previously from Singapore, Three Arrows filed for bankruptcy in the British Virgin Islands. Teneo, the firm appointed by the British Virgin Islands to oversee the liquidation of 3AC, has earlier accused the founders of a lack of meaningful cooperation.

“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” said a Teneo representative.

Three Arrows Capital’s Collapse Ripples Financial Markets

The development follows a domestic freezing order issued by the Singapore Court a day earlier and coincides with Zhu’s arrest in September at Singapore’s Changi Airport while attempting to leave the country.

Singapore has further prohibited Zhu and Davies from engaging in any regulated activity within its jurisdiction.

Earlier this month, Teneo transferred approximately $12.73 million worth of DYDX tokens to the cryptocurrency exchange Binance, managing 3AC’s assets during the liquidation process. Prior to this move, Teneo held a significant position in DYDX, ranking as the sixth-largest holder. Despite the reduction in holdings post-transfer, they still retain a substantial amount of DYDX tokens valued at around $29.80 million.

In the aftermath of the collapse of Three Arrows Capital, the British Virgin Islands court’s freezing order on Su Zhu’s global assets reveals its continuous consequences

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About The Author

Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.

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Alisa Davidson
Alisa Davidson

Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.

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