March 28, 2024
3AC's Bankruptcy Fallout: Court Blocks Founder's Assets Worth $1.14 Billion
Latest Cryptocurrency News

Three Arrows Capital Founders’ Assets Frozen Amid Ongoing Bankruptcy Saga

The ongoing bankruptcy ordeal of Singapore-based cryptocurrency hedge fund Three Arrows Capital (3AC) is developing further, as a court has frozen over a billion dollars of the founders’ assets. As reported by Bloomberg on Dec. 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 valued at $1.14 billion.

According to the firm’s liquidator, Teneo, this action was taken in response to the aftermath of 3AC’s collapse in 2022, which has left creditors owed an estimated $3.3 billion. Teneo alleged that the founders should be held responsible for causing the fund’s deterioration and sought a worldwide freezing order equivalent to the value of the damage incurred.

The freeze has also affected assets belonging to Davies’ wife, Kelly Chen. Additionally, Teneo highlighted that the 3AC founders are under a domestic freezing order from the Singapore Court. At present, there has been no immediate response from Teneo to Cointelegraph’s request for comment.

Established in 2012, 3AC stood as one of the leading crypto hedge funds globally until it encountered challenges meeting lender demands and declared bankruptcy amidst the 2022 crypto market downturn. The situation escalated as Zhu was reportedly apprehended in Singapore in September 2023 while attempting to leave the country after being sentenced to four months’ imprisonment by a local court. Davies, who also faced an imprisonment committal order, reportedly remains unaccounted for.

Furthermore, both Zhu and Davies faced a nine-year ban from engaging in regulated activities in Singapore imposed by the local central bank.

Image by freepik

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