A British Virgin Islands court docket froze $1.14 billion in property belonging to the founders of Three Arrows Capital (3AC), Su Zhu, Kyle Davies, and his spouse, Kelly Chen, Bloomberg reported on Dec. 21, citing an emailed assertion from the bankrupt hedge fund liquidator Teneo.
The freezing order has international implications, impacting the founders’ property worldwide. Teneo asserted that the founders ought to be held accountable for inflicting 3AC’s monetary decline equal to the freezing orders sought.
The liquidator additionally reportedly secured a home freezing order from a Singapore court docket, because the bankrupt agency operated within the Asian nation earlier than its collapse.
Final yr, 3AC filed for chapter within the British Virgin Islands following a document market downturn that considerably impacted different crypto firms like Celsius.
The hedge fund beforehand held a distinguished place within the crypto business and had substantial funding stakes in tasks akin to Terra’s LUNA and Solana. At its peak, the agency managed round $18 billion of digital property.
Though it has been over a yr for the reason that hedge fund’s chapter submitting, a transparent decision pathway has but to emerge as a result of founders’ lack of significant cooperation within the asset restoration course of, resulting in authorized penalties.
Zhu was imprisoned for 4 months for contempt of court docket on account of non-compliance with orders and is at present serving the committal order. Nonetheless, CryptoSlate reported that his launch is imminent as he was of fine habits in the course of the interval of custody.
In the meantime, Davies faces an identical order, although his whereabouts stay unknown.
Moreover, the Financial Authority of Singapore (MAS) has banned each from regulated funding actions for 9 years.
However the orders and bans, Zhu and Davies stay actively concerned in crypto ventures. They collaborated with CoinFLEX CEO Mark Lamb in early 2023 to launch OPNX, an alternate for buying and selling crypto chapter claims.
