Three Arrows Capital Founders' Assets Frozen: $1.14 Billion at Stake

• Court Freezes $1.14 Billion Assets of Three Arrows Capital Founders
• Teneo's Worldwide Freezing Order
• Three Arrows Capital's Downfall
• Debt to Creditors
• Singapore Court's Domestic Freezing Order
• Founders Face Fines in Dubai over New Digital Asset Exchange

Court Freezes $1.14 Billion Assets of Three Arrows Capital Founders

Three Arrows Capital, once a leading crypto hedge fund, is now subject to rigorous scrutiny. A court in the British Virgin Islands has frozen assets worth $1.14 billion, attributed to the fund's founders. As per the court order, Su Zhu and Kyle Davies, along with Davies' wife, Kelly Chen, are barred from transferring or selling these assets.

Teneo's Worldwide Freezing Order

Teneo, the liquidator appointed by the court, has reported this worldwide freezing order. It was sought in line with claims currently being pursued by the liquidators. The claims suggest, amongst other things, that the founders are to blame for the significant decline in 3AC's position. The amount of decline is purportedly equivalent to the value of freezing orders sought.

Three Arrows Capital's Downfall

Three Arrows Capital was a major player in the global crypto hedge fund landscape but encountered significant trouble in 2022 following the collapse of Terra Luna. Questions are now arising around Three Arrows Capital's capability to reimburse creditors.

Debt to Creditors

Teneo has indicated that Three Arrows Capital owes approximately $3.3 billion to various creditors. Despite being appointed as a liquidator by the British Virgin Islands court, Teneo alleges uncooperativeness from the fund's founders during the procedure.

Singapore Court's Domestic Freezing Order

According to Teneo, a domestic freezing order was issued by the Singapore Court one day prior to this international freezing order. Su Zhu was arrested in September at Singapore's Changi Airport while trying to depart the country. Furthermore, both founders of Three Arrows Capital are currently prohibited from carrying out any regulated activity in the country.

Founders Face Fines in Dubai over New Digital Asset Exchange

In August of the same year, the founders faced hefty fines in Dubai over their newly established digital-asset exchange, OPNX. The Virtual Assets Regulatory Authority (VARA) in Dubai stated that the new company incurred a fine of $2.7 million in May. OPNX was started earlier this year by Su Zhu and Kyle Davies in collaboration with Mark Lamb and Sudhu Arumugam. It was intended to be a crypto trading platform. Post the fall of Three Arrows Capital in 2022, the founders identified Dubai as a key potential base.

Edited by Jonathan Stoker