Three Arrows Capital Founders’ Assets Worth $1.1 Billion Frozen by BVI Court
During the filing, the company disclosed its substantial debts to creditors, amounting to at least $3.5 billion.
In a significant legal development, a British Virgin Islands (BVI) court has made a ruling to freeze the assets of Su Zhu and Kyle Davies, co-founders of the crypto hedge fund Three Arrows Capital, along with Davies’ wife Kelly Chen. The freeze, amounting to assets worth up to $1.1 billion, was confirmed by the company’s liquidator, Teneo.
The decision aims to restrict the trio from managing their assets globally and comes in response to claims made by the liquidators. These claims suggest the founders' culpability in causing a substantial decline in Three Arrows Capital's financial standing, an amount equivalent to the value covered by the freezing orders sought, according to a news report by The Block.
Alongside the BVI court's action, a Singapore court has also granted a domestic freezing order, marking another legal step in this ongoing process.
The recent development follows an incident in September when Su Zhu was apprehended at Singapore’s Changi airport while attempting to leave the country. Zhu, alongside Kyle Davies and Kelly Chen, faced questioning in a Singapore court last week. This inquiry is in connection with efforts led by 3AC’s liquidator Teneo to recover a significant debt owed to creditors, totaling approximately $3.5 billion.
Three Arrows Capital declared bankruptcy in July 2022, prompted by market disruptions following the collapse of the Terra ecosystem. During the filing, the company disclosed its substantial debts to creditors, amounting to at least $3.5 billion.
The freeze order by the BVI court is a pivotal development in this legal saga, indicating a concerted effort to address the financial liabilities and responsibilities attributed to the founders of Three Arrows Capital.
