The ongoing bankruptcy proceedings of Three Arrows Capital (3AC) have led to a significant legal development. The British Virgin Islands court has imposed a worldwide freezing order on assets owned by 3AC co-founders Su Zhu and Kyle Davies, valued up to $1.14 billion. This move, reported by Bloomberg on December 21, extends to assets owned by Davies' wife, Kelly Chen.
Teneo, the liquidator for 3AC, initiated the freezing order amid allegations that Zhu and Davies were responsible for the hedge fund's financial downfall. The court's decision aligns with Teneo's claims that the co-founders' actions led to significant losses equivalent to the value of the frozen assets. Additionally, a domestic freezing order from the Singapore Court is also in effect against the 3AC founders.
Established in 2012, 3AC was among the world's largest crypto hedge funds before collapsing during the 2022 crypto bear market. Zhu was arrested in Singapore in September 2023, and Davies, who faces imprisonment, reportedly remains at large.
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