$1 Billion Asset Seized From BVI Owned by Three Arrows Founder

The founders of Three Arrows Capital, Su Zhu and Kyle Davies, have been hit with a massive $1 billion asset freeze by two courts. The British Virgin Islands court has locked up their global stash, while Singapore has followed suit, further tightening the legal grip on their dwindling fortune.

Three Arrows Capital (3AC), a collapsed cryptocurrency hedge fund, once managed over $10 billion in assets. However, in June 2022, it became evident that the fund was in serious trouble, facing substantial losses due to poor investment decisions and a lack of liquidity. By July, 3AC had filed for bankruptcy, leaving its creditors owed a staggering $3.5 billion.

In response to the collapse of 3AC, Teneo, the company responsible for managing the fund’s liquidation, accused Zhu and Davies of engaging in financial misconduct that contributed to its downfall. The pair have been accused of misusing customer funds for personal gain and failing to meet margin calls, among other allegations. As a result, a court in the British Virgin Islands has frozen assets worth $1.1 billion belonging to Zhu and Davies.

In addition to the freeze order from the British Virgin Islands court, Singapore’s Monetary Authority (MAS) has also implemented a freeze on assets belonging to Zhu and Davies as part of its investigation into 3AC’s activities. This action is expected to have a significant impact on the duo, who were once regarded as crypto royalty due to their wealth and influence in the industry.

“The worldwide freezing order has been sought in connection with claims that are being pursued by the liquidators, alleging that the founders are responsible for causing 3AC’s position to deteriorate by an amount equivalent to the value of the freezing orders sought,” stated Teneo.

Tags: Crypto news