A British Virgin Islands (BVI) court has frozen assets worth about $1.14 billion of the co-founders of the cryptocurrency hedge fund Three Arrows Capital (3AC), in a move to protect creditors. This decision, aimed at ensuring the interests of creditors who are owed $3.3 billion, affects Su Zhu, Kyle Davies, and Kelly Chen (Davies’ spouse), prohibiting them from transferring or disposing of these assets.<\/p>\n\n\n\n
Liquidator Teneo, appointed by the BVI court, alleges that the founders’ decisions significantly contributed to the firm’s collapse, resulting in a substantial debt of $3.3 billion. The worldwide freezing order relates to claims that the founders’ actions exacerbated 3AC’s financial woes, with the frozen assets roughly equaling the firm\u2019s debt.<\/p>\n\n\n\n
The legal troubles for the 3AC founders have been escalating. Following a freezing order by the Singapore Court, Su Zhu was arrested in Singapore on charges linked to the hedge fund’s failure. His arrest at Changi Airport occurred as he tried to leave the country, which has since restricted both Zhu and Davies from participating in regulated financial activities within Singapore.<\/p>\n\n\n\n
Three Arrows Capital, primarily based in Singapore, declared bankruptcy in the British Virgin Islands after failing in 2022. Its downfall was due to a series of leveraged bets gone wrong amidst a downturn in the broader cryptocurrency market.<\/p>\n\n\n\n
The collapse of Three Arrows Capital is part of a larger pattern in the crypto industry, where several notable figures who flourished during the market’s bull run have faced significant repercussions for engaging in risky financial practices. This includes Sam Bankman-Fried, the founder of FTX Trading Ltd., who was recently convicted of fraud in a high-profile trial.<\/p>","protected":false},"excerpt":{"rendered":"
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