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3AC Founders $1.14B Assets Frozen in Cryptocurrency Hedge Fund Bankruptcy

Crypto The Bankruptcy saga of Three Arrows Capital (3AC), a Singapore-based cryptocurrency hedge fund, has taken a significant turn with a British Virgin Islands court issuing a global freezing order on the assets of its co-founders, Su Zhu and Kyle Davies.As reported on December 21, the court's directive prohibits Su Zhu and Kyle Davies, along
 

The Bankruptcy saga of Three Arrows Capital (3AC), a Singapore-based cryptocurrency hedge fund, has taken a significant turn with a British Virgin Islands court issuing a global freezing order on the assets of its co-founders, Su Zhu and Kyle Davies.

As reported on December 21, the court’s directive prohibits Su Zhu and Kyle Davies, along with Kyle’s wife Kelly Chen, from transferring or selling assets valued at up to $1.14 billion. The freezing order comes in the wake of 3AC’s collapse in 2022, with liquidator Teneo estimating that the fund’s creditors are owed approximately $3.3 billion.

Teneo, the liquidator overseeing the case, alleges that the founders should be held responsible for causing a deterioration in 3AC’s financial position equivalent to the value of the freezing orders. Additionally, Teneo highlighted that the co-founders are already subject to a domestic freezing order from the Singapore Court.

The global freezing order was sought as part of Teneo’s efforts to address the fund’s financial downfall. The liquidator has not yet responded to Cointelegraph’s request for comment.

Established in 2012, 3AC was once among the world’s largest cryptocurrency hedge funds. However, it faced a crisis during the 2022 crypto bear market when it failed to meet margin calls from lenders, leading to its bankruptcy. Su Zhu was arrested in Singapore in September 2023 when attempting to flee the country after receiving a four-month imprisonment sentence from a local court. Meanwhile, Kyle Davies, who also faced an imprisonment committal order, remains at large.

Adding to their legal woes, both Zhu and Davies have been barred from engaging in regulated activities in Singapore for a period of nine years, as imposed by the local central bank. The intricate web of legal actions reflects the far-reaching consequences of 3AC’s collapse on its founders and associated entities.

Wasif Shakir

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