Three Arrows Capital Founders’ $1 Billion in Assets Are Frozen by a Court

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Last Updated on December 21, 2023 by Bitfinsider

Teneo Restructuring, the liquidators of Three Arrows Capital (3AC), have reported that a British Virgin Islands court has blocked over $1 billion in assets owned by the founders of the collapsed cryptocurrency hedge fund.

Teneo stated in an email that the global court order, which was granted on Monday, pertains to the founders Su Zhu and Kyle Davies as well as the latter’s wife, Kelly Chen. Zhu failed to assist in closing down 3AC and was sentenced to four months in prison in Singapore in September. Because of his outstanding behavior, his release is anticipated this month. In July of last year, 3AC filed for Chapter 15 bankruptcy due to irreversible losses resulting from the collapse of stablecoin issuer Terra.

Teneo has been pursuing a $1.3 billion settlement, and Chen has been included in the directive to pursue all feasible options in order to optimize returns to creditors, whose combined claims exceed $3 billion.

“The order is specifically designed to prevent the Founders and Ms. Kelly Chen from disposing of or otherwise dealing with assets in any way that might frustrate eventual enforcement by the liquidators,” Teneo stated in a statement. A domestic freezing order was given to assets located in Singapore on Wednesday by a Singaporean court.

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