3AC Founders Facing $1 Billion Global Asset Freeze: Report

A British Virgin Islands Court Grants Global Asset Freezing Order to 3AC Co-Founders Su Zhu and Kyle Davies.

The bankruptcy proceedings surrounding Singapore-based cryptocurrency hedge fund Three Arrows Capital (3AC) continue to develop as a court has frozen over a billion dollars' worth of assets belonging to its founders.

According to Bloomberg's report on December 21, a court in the British Virgin Islands has issued a ban preventing 3AC co-founders Su Zhu and Kyle Davies from transferring or selling assets totaling up to $1.14 billion, as confirmed by the firm's liquidator, Teneo. The impact of this restriction has also extended to assets owned by Kyle Davies' wife, Kelly Chen. Teneo has estimated that 3AC creditors are owed approximately $3.3 billion following the hedge fund's collapse in 2022.

Teneo, the liquidator overseeing the bankruptcy proceedings, has sought a worldwide freezing order, alleging that the founders are responsible for causing 3AC's financial deterioration equal to the value of the freezing orders requested. Additionally, it was noted that the 3AC founders are already subject to a domestic freezing order issued by the Singapore Court.

Teneo has not yet responded to Cointelegraph's request for comment.

Established in 2012, 3AC was once one of the world's largest crypto hedge funds. However, the firm failed to meet margin calls from lenders and filed for bankruptcy during the 2022 crypto bear market. Su Zhu was arrested in Singapore in September 2023, following an attempt to flee the country after receiving a four-month prison sentence from a local court. Meanwhile, Kyle Davies, who also faced an imprisonment committal order, reportedly remains at large.

Both Zhu and Davies were additionally banned from engaging in regulated activities in Singapore for a period of nine years by the local central bank.

Read more: Proposed Crypto Regulations in the US Driven by Lawmakers' Concerns and Doubts.

Dec 21, 2023