Crypto Fund Founders’ $1 Billion Assets Frozen Amidst Financial Turmoil
Reports have emerged from the British Virgin Islands confirming a court-ordered freeze on assets valued at an estimated $1 billion.
These assets belong to the individuals behind the cryptocurrency hedge fund, Three Arrows Capital (3AC). The liquidator of the fund, Teneo, has verified this development, highlighting significant financial implications.
The court directive restrains the founders—Su Zhu, Kyle Davies, and Kyle’s wife Kelly Chen—from any transactions involving assets worth up to $1.14 billion. This action has surfaced amidst claims by the liquidator, suggesting that the founders bear responsibility for Three Arrows Capital’s substantial financial decline, amounting to the value encompassed in the freezing order.
This development follows a prior legal intervention by the Singapore Court, disclosed by Teneo, and coincides with the recent apprehension of Su Zhu at Singapore’s Changi Airport in September. Singapore authorities have imposed restrictions on Su Zhu and Kyle Davies, preventing them from participating in regulated activities within the country.
Once a dominant entity in the cryptocurrency hedge fund domain, Three Arrows Capital faced a dramatic downfall in 2022, stemming from a series of unsuccessful investments. This collapse occurred amidst a broader market downturn within the cryptocurrency sector, contributing to the company’s woes.
READ MORE: Is Bitcoin on the Verge of a Bull Run? Analysts Weighs In
Having previously operated from Singapore, the 3AC hedge fund sought legal refuge through bankruptcy proceedings in the British Virgin Islands. The court-appointed liquidator, Teneo, has raised allegations of non-cooperation against the fund’s founders, Su Zhu and Kyle Davies.
Once highly regarded figures in the buoyant cryptocurrency market, Su Zhu and Kyle Davies now confront a tarnished reputation and a significant decline in their fortunes due to revelations about their involvement in risky practices. Recent court discussions in Singapore have revolved around the potential release of Su Zhu following a series of inquiries.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
