The assets of Su Zhu and Kyle Davies, the founders of the now-defunct cryptocurrency hedge firm Three Arrows Capital, as well as Davies’ wife, have been placed under court order in the British Virgin Islands, valued at up to $1.1 billion.
The BVI court issued the order on December 18 to stop the two founders and Davies’ wife Kelly Chen from handling their assets anywhere in the world, according to a statement released by the company’s liquidator Teneo and shared with The Block today.
The liquidators have filed claims alleging, among other things, that the Founders should be held accountable for 3AC’s position deteriorating by an amount equal to the value of the freezing orders sought. In connection with these claims, a worldwide freezing order has been requested.
The BVI court decision follows Zhu’s September detention at Singapore’s Changi airport while attempting to leave the nation. Last week, Zhu was questioned in a Singaporean courtroom in response to Teneo, 3AC’s liquidator, which is attempting to recover $3.5 billion on behalf of creditors.
In July 2022, Three Arrows declared bankruptcy following the collapse of the Terra ecosystem, which rocked the cryptocurrency markets. According to paperwork submitted at the time, the company owed creditors at least $3.5 billion.
