In a significant development, a court in the British Virgin Islands has issued a worldwide asset freeze worth $1.14 billion on the co-founders of cryptocurrency hedge fund Three Arrows Capital (3AC). The freeze order, part of the liquidators’ efforts to recover the fund’s assets and provide returns to creditors, affects co-founders Su Zhu and Kyle Davies, as well as Davies’ wife Kelly Chen.
Three Arrows Capital filed for bankruptcy last year after suffering substantial losses due to a sell-off in cryptocurrency assets. This led to a series of legal proceedings, with liquidators appointed to oversee the bankruptcy proceedings. The court’s freeze order prohibits Su Zhu, Kyle Davies, and Kelly Chen from dealing with their assets, including transferring or selling them, up to a total value of $1.144 billion.
The inclusion of Kyle Davies’ wife in the asset freeze order signifies an expansion of the liquidators’ efforts to recoup the fund’s assets. By extending the freeze to cover assets held by Davies’ spouse, the liquidators hope to enhance the chances of recovering funds owed to creditors.
The liquidators have faced challenges in retrieving the assets of Three Arrows Capital, accusing Su Zhu and Kyle Davies of non-cooperation and failing to provide essential information voluntarily. Su Zhu, who was arrested in September, has completed his sentence. The joint liquidators estimate that creditors are expected to receive 45.74% of their claims from the bankrupt estate, with initial distributions planned for the first quarter of the following year.
The estimated value of Three Arrows Capital’s assets currently stands at $1.16 billion, with claims worth $2.7 billion anticipated for distribution. The liquidators have resolved litigation against several parties, including Digital Currency Group (DCG), Genesis, and BlockFi, contributing an estimated $292 million to the reported assets. However, the BlockFi settlement is still subject to approval.
A total of 154 claims, with a combined value of $3.4 billion, have been filed against the Three Arrows Capital estate. Some claims were not admitted for distribution, while others have been rejected or are expected to face rejection. Additionally, claims worth $76 million remain in dispute, adding complexity to the liquidation process.
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, Three Arrows Capital, BlockFi, Digital Currency Group (DCG), Teneo |
| Currencies | None |
| Securities | None |
