According to Three Arrows Capital’s liquidator, Teneo, a British Virgin Islands court has frozen $1.14 billion worth of assets belonging to the founders. According to the court order, co-founders Su Zhu and Kyle Davies and Davies’ wife, Kelly Chen, cannot transfer or sell the assets.
Teneo stated, “The worldwide freezing order has been sought in connection with claims that are being pursued by the liquidators that allege, amongst other things, that the founders should be held responsible for causing 3AC’s position to deteriorate by an amount that is equivalent to the value of the freezing orders sought.“
Three Arrows Capital was one of the largest crypto hedge funds in the world. The firm imploded in 2022 after the collapse of Terra Luna.
Will Three Arrows Capital Reimburse creditors?
The liquidator, Teneo, highlighted that the firm owes almost $3.3 billion to creditors. Teneo was appointed as a liquidator by a British Virgin Islands court. However, the firm alleged that the founders were not cooperative with the procedure.
According to Teneo, the court order comes a day after a domestic freezing order was issued by the Singapore Court. Zhu was arrested in September at Singapore’s Changi Airport while attempting to leave the country. Moreover, the country has banned both Three Arrows Capital founders from conducting any regulated activity.
Also Read: Three Arrows Capital: Su Zhu Grilled in Singapore Court
In August of this year, both founders were fined in Dubai ver their new digital-asset exchange, OPNX. According to Dubai’s Virtual Assets Regulatory Authority (VARA), the new company was issued a fine of $2.7 million in May. Zhu and Davies, along with Mark Lamb and Sudhu Arumugam, founded OPNX earlier this year. The founders presented it as a crypto trading platform. After the collapse of Three Arrows Capital in 2022, the founders turned to Dubai as a key location.