Three Arrows Capital A British Virgin Islands court froze assets worth $1.14 billion belonging to the founders, according to Teneo, the liquidator appointed to the company. According to the court decision, co-founders Su Zhu and Kyle Davies, and Davies’ wife Kelly Chen, will not be able to transfer or sell their assets.
“The worldwide freezing order was sought in connection with claims pursued by the liquidators, which alleged, among other things, that the founders should be held liable for causing 3AC’s position to deteriorate by an amount equivalent to the value of the freezing orders sought,” Teneo said. he commented.
As Koinfinans.com reported, Three Arrows Capital was known as one of the largest crypto hedge funds in the world. The firm went bankrupt in 2022 after the collapse of Terra.
Liquidator Teneo also stated that the company owes approximately $3.3 billion to creditors. Teneo was appointed liquidator by a British Virgin Islands court. However, the company claimed that the founders did not cooperate with the procedure.
According to Teneo, the court order comes a day after a local freezing order was issued by the Singapore Court. Zhu was arrested at Singapore’s Changi Airport in September while trying to leave the country. Additionally, the country banned both founders of Three Arrows Capital from conducting any regulated activities.
In August this year, both founders were fined in Dubai for their new digital asset exchange, OPNX. According to Dubai’s Virtual Assets Regulatory Authority (VARA), the new company was fined $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.