Three Arrows Capital (3AC) Founders Face $1 Billion Asset Freeze
In a staggering turn of events, the liquidation unit overseeing the collapse of investment fund Three Arrows Capital has filed for bankruptcy. Their plea to the court seeks to freeze assets worth over $1 billion belonging to co-founders Su Zhu and Kyle Davies. This move aims to facilitate the reimbursement process for creditors.
Teneo, the liquidation unit, disclosed that approximately $1 billion in assets owned by Zhu and Davies, co-founders of Three Arrows Capital (3AC), has been frozen by the British Virgin Islands court. The court issued an order preventing both founders and Davies’ wife, Kelly Chen, from transferring or selling assets totaling up to $1.14 billion, effectively rendering these assets frozen.
This action was taken as Teneo asserted that the founders must be held accountable for the collapse of Three Arrows Capital. Therefore, their assets are being targeted to settle debts owed to creditors, which are estimated to soar up to $3.3 billion.
Around $1 billion in assets belonging to the founders of cryptocurrency hedge fund Three Arrows Capital have been frozen by a British Virgin Islands court, according to the firm’s liquidator https://t.co/RfApXE1Olm
— Bloomberg Crypto (@crypto) December 21, 2023
“We have filed a complaint with the court, requesting the global freezing of assets. The rationale behind this action is to hold the founders responsible for tarnishing 3AC’s standing, resulting in substantial losses equivalent to the plummeting stock value,” stated a representative from Teneo.
Operating out of Singapore, 3AC has filed for bankruptcy in the British Virgin Islands. Teneo, appointed by the British Virgin Islands court, has repeatedly accused Zhu and Davies of non-cooperation, disregarding summonses from the court.
In early September 2023, Su Zhu was apprehended by Singaporean authorities while attempting to flee the country and was detained for over three months. However, Zhu has since been released and has resumed activity on social media platform X (formerly known as Twitter).
Yet, Zhu’s release does not absolve him of responsibility. Both founders have been barred by Singaporean authorities from engaging in transactions or financial activities within the lion city for a period of nine years. Additionally, a domestic asset freeze order was issued by the Singaporean court just a day prior.
The ongoing legal saga surrounding Three Arrows Capital and its founders continues to unravel, with global financial repercussions echoing throughout the investment world. As the freeze on assets persists and legal battles intensify, the fate of Zhu, Davies, and the sprawling debts of 3AC hang precariously in the balance.
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