Summary
A British Virgin Islands court has issued a freezing order prohibiting the co-founders of crypto hedge fund Three Arrows Capital (3AC) from transferring or selling assets worth over $1 billion. The order is part of the liquidators’ ongoing efforts to secure 3AC’s assets and recover losses from the collapse of the firm. Three Arrows Capital filed for bankruptcy in July 2022, citing extreme fluctuations in cryptocurrency markets. Singapore’s central bank also previously ordered restrictions on the activities of the co-founders. A Singapore court has now granted a similar freezing order.
Key Points
1. A British Virgin Islands court has issued a court order prohibiting the co-founders of crypto hedge fund Three Arrows Capital (3AC) from moving over $1 billion worth of assets.
2. The order, filed on Monday, prevents co-founders Su Zhu and Kyle Davies, as well as Davies’ wife Kelly Chen, from transferring or selling assets totaling $1.14 billion.
3. The court action is part of the liquidators’ efforts to secure 3AC’s assets, recover losses from the founders and Chen, and meet the company’s obligations to its creditors. The freezing order has been sought in connection with claims that the founders are responsible for causing 3AC’s financial deterioration.