Founders’ Global Asset Freeze and Seizure of $1 Billion Follows Three Arrows Collapse

Article Summary:
The founders of the collapsed cryptocurrency hedge fund Three Arrows Capital (3AC), Su Zhu and Kyle Davies, have had their assets frozen by a court in the British Virgin Islands. This is part of the effort to recover funds for creditors who are owed $3.5 billion. The fund had once managed over $10 billion in assets but filed for bankruptcy in July 2022 due to poor investment decisions and a lack of liquidity. The liquidators accuse Zhu and Davies of financial wrongdoing, including using customer funds for personal gain. Singapore’s Monetary Authority has also frozen their assets as part of its investigation into 3AC’s activities.

Article:
The tides have turned, and it’s an ugly sight for Su Zhu and Kyle Davies, the founders of the collapsed cryptocurrency hedge fund, Three Arrows Capital (3AC). A court in the British Virgin Islands has frozen their assets worth $1.1 billion in an attempt to recover funds for creditors owed $3.5 billion by the now-defunct firm.

Once a major player in the cryptocurrency industry, managing over $10 billion in assets, 3AC’s downfall became apparent in June 2022. Reports indicated significant losses due to poor investment decisions and a lack of liquidity. By July, the fund had filed for bankruptcy, leaving its creditors in debt.

In response to 3AC’s collapse, Teneo, the company responsible for managing the liquidation, accused Zhu and Davies of engaging in financial wrongdoing that contributed to the firm’s downfall. They are alleged to have used customer funds for personal gain and failed to meet margin calls. As a result, the British Virgin Islands court has frozen assets worth $1.1 billion belonging to the founders.

In addition to the freeze order from the British Virgin Islands court, Singapore’s Monetary Authority (MAS) has also imposed a freeze on Zhu and Davies’ assets as part of its investigation into 3AC’s activities. This development is anticipated to have a significant impact on the founders, who were once considered influential figures in the crypto industry due to their wealth and influence.

In summary, the founders of the collapsed cryptocurrency hedge fund, 3AC, have had their assets frozen by both the British Virgin Islands court and Singapore’s Monetary Authority. The freeze orders aim to recover funds for creditors and investigate allegations of financial wrongdoing. The founders’ once-respected status in the industry has taken a major hit.