HomeNewsFreeze Ordered on $1 Billion Assets of Three Arrows Capital Founders

Freeze Ordered on $1 Billion Assets of Three Arrows Capital Founders

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  • Asset Freeze: A court in the British Virgin Islands orders a freeze on assets worth approximately $1 billion owned by Three Arrows Capital (3AC) founders.
  • Creditor Claims: The liquidator, Teneo, estimates that 3AC owes creditors around $3.3 billion, with legal actions intensifying against the founders.

In a significant legal development, the British Virgin Islands court has issued an order to freeze assets approximating $1 billion, belonging to the founders of the embattled cryptocurrency hedge fund, Three Arrows Capital (3AC). Confirmed by Teneo, the fund’s liquidator, this decision marks a pivotal moment in the ongoing saga involving one of the most talked-about hedge funds in the crypto sector.

Restrictive Measures on Founders’ Assets

The court’s decision specifically targets the movement and disposal of assets by co-founders Su Zhu, Kyle Davies, and Davies’ wife, Kelly Chen. The order effectively restrains them from transferring or selling assets up to the value of $1.14 billion. This action by the court underpins the severity of the situation facing 3AC, with Teneo estimating the firm’s liabilities to creditors at about $3.3 billion. In a statement, Teneo elaborated:

“The worldwide freezing order has been sought in connection with claims that the liquidators allege the founders should be held responsible for causing 3AC’s financial deterioration.”

Additionally, this move follows a domestic asset freezing order by the Singapore Court, a jurisdiction previously hosting 3AC’s operations. The escalation of legal actions became evident with the arrest of Su Zhu at Singapore’s Changi Airport in September, while he attempted to leave the country.

The Downfall of Three Arrows Capital

Once a prominent entity in the cryptocurrency hedge fund arena, Three Arrows Capital’s fall from grace has been nothing short of dramatic. The fund’s collapse occurred amidst a broader downturn in the crypto market, which saw several high-profile collapses and liquidity crises within the industry.

Operating from Singapore, 3AC sought bankruptcy protection in the British Virgin Islands as it faced mounting challenges. Teneo’s appointment as the liquidator brought to light allegations of non-cooperation against Zhu and Davies, exacerbating the scrutiny on their business practices.

The founders, once lauded during the crypto market’s bullish trends, now confront significant legal and financial hurdles. The recent court proceedings and asset freeze reflect the heightened regulatory and legal focus on the cryptocurrency sector, especially in cases involving high-risk investment strategies and large-scale creditor liabilities.

As the legal proceedings continue, the fate of Three Arrows Capital and its founders remains a focal point of interest and caution in the cryptocurrency community, underlining the volatile and often unpredictable nature of this burgeoning financial sector.

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Nikita Dmitrievich
Nikita Dmitrievichhttps://www.ethnews.com/
Nikita, a young and ambitious crypto investor who has been actively involved in the cryptocurrency world for the past 6 years. With a keen interest in blockchain technology, Nikita has been investing in various cryptocurrencies and has seen significant returns on his investments. He is passionate about educating others on the potential of cryptocurrencies and frequently shares his insights on social media platforms. Nikita believes that cryptocurrencies are the future of finance and is constantly researching new projects to invest in. With his dedication and knowledge, Nikita is quickly becoming a prominent figure in the crypto community. Business Email: info@ethnews.com Phone: +49 160 92211628