Court Freezes $1 Billion of Assets of Three Arrows Capital Founders

CoinDeskPolicyPublished on 2023-12-20Last updated on 2023-12-21

Abstract

The worldwide order by a British Virgin Islands court applies to Su Zhu, Kyle Davies and Davies' wife, Kelly Chen.

More than $1 billion in assets belonging to the founders of the bankrupt crypto hedge fund Three Arrows Capital (3AC) have been frozen by a British Virgin Islands court, according to the firm's liquidators, Teneo Restructuring.

The worldwide court order, issued Monday, applies to founders Su Zhu and Kyle Davies as well as Davies' wife, Kelly Chen, Teneo said in an email. Zhu was jailed for four months in Singapore in September for failing to help wind up 3AC. He is expected to be released this month for good behavior. 3AC filed for Chapter 15 bankruptcy in July last year after the collapse of stablecoin issuer Terra caused irrecoverable losses.

Teneo has been seeking $1.3 billion and included Chen in the order to use all available avenues to maximize returns to creditors, whose claims total more than $3 billion.

"The order is specifically designed to prevent the Founders and Ms. Kelly Chen from disposing of or otherwise dealing with assets in any way that might frustrate eventual enforcement by the liquidators," Teneo said in a statement.

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On Wednesday, a Singapore court applied a domestic freezing order for assets located there.

Edited by Sheldon Reback.

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