Court Freezes 3AC Founders Assets Worth Over $1 Billion
$1 billion frozen from 3AC founders by the court; Teneo confirms, as 3AC faces $3.3 billion debt post crypto crash.
In a recent report from Bloomberg, $1 billion in assets owned by the founders of the crypto hedge fund Three Arrows Capital (3AC) has been frozen by a court in the British Virgin Islands. The company managing 3AC's closure, Teneo, confirmed this news.
Co-founders Su Zhu, Kyle Davies, and Davies’ wife, Kelly Chen, would have no means or access to move their over $1 billion assets. As estimated by Teneo, 3AC owes about $3.3 billion to creditors. They claimed that these founders contributed to the worsening of 3AC’s financial problems, this being one of the reasons why the court froze their assets.
Previously, Singapore authorities made a domestic freezing order against SU Zhu, founder Su Zhu was arrested at Singapore’s airport after which the authorities banned Zhu and Davies from financial activities in the country.
Once a leading crypto fund, Three Arrows faced a financial downturn in 2022 due to poor investments and a broader market crash (during the collapse of Terraform Labs). Originally based in Singapore, 3AC declared bankruptcy in the British Virgin Islands. Teneo also accused the founders of not cooperating.
Once celebrated, Zhu and Davies now face a damaged reputation due to risky financial practices. Recently, a Singapore court questioned Zhu, with talks about the possibility of his release.
