A court in the British Virgin Islands has frozen $1 billion in assets belonging to the founders of collapsed crypto hedge fund, Three Arrows Capital (3AC). The court order prohibits co-founders Su Zhu and Kyle Davies, as well as Davies’ wife, from transferring or selling assets worth over $1 billion.
According to liquidators Teneo, 3AC owes its creditors an estimated $3.3 billion. The freezing order was sought by the liquidators, who claim that the founders should be held responsible for causing 3AC’s financial position to deteriorate by an amount equivalent to the value of the freezing orders.
3AC, once one of the largest crypto hedge funds, collapsed in 2022 due to a series of bad investment decisions and the overall decline in the cryptocurrency market. The company was liquidated after failing to meet margin calls from several lenders.
In addition to the asset freeze, the Monetary Authority of Singapore (MAS) has banned Davies and Zhu from participating in regulated activities or holding top executive positions at financial firms in Singapore for a period of nine years. Zhu was also arrested in Singapore and is expected to serve a four-month prison sentence after failing to cooperate with the liquidators.
Disclaimer: This summary is provided for informational purposes only and does not constitute legal, tax, investment, financial, or other advice.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Asia |
| Countries | 🇻🇬 🇸🇬 |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Su Zhu, Kelly Chen, Kyle Davies |
| Companies | Genesis, Teneo, BlockFi, Monetary Authority of Singapore (MAS), Voyager Capital |
| Currencies | None |
| Securities | None |
