Three Arrows Capital funds freeze by British Virgin Islands court

Estimated read time 2 min read

A British Virgin Islands court has issued an order resulting on a Three Arrows Capital funds freeze on assets worth up to $1.1 billion. This includes assets owned by Su Zhu, Kyle Davies, and Davies’ wife, Kelly Chen, founders of the defunct crypto hedge fund Three Arrows Capital.

Allegations and Deteriorating Positions

The freezing order stems from claims made by liquidators, alleging the founders’ responsibility for Three Arrows Capital’s significant financial downturn. The order aims to prevent the trio from dealing with their assets globally.

Three Arrows Capital funds freeze and Singapore’s Echo

The BVI court’s decision for a worldwide freezing order is paralleled by a similar move in a Singapore court. Singapore granted a domestic freezing order, showcasing the international legal challenges faced by Zhu, Davies, and Chen.

Arrests, Questioning, and Financial Turmoil

Su Zhu’s arrest at Singapore’s Changi airport in September marked a critical turning point. He followed a similar fate than Luna’s Do Kwon that has several pending extradition processes. Last week, Zhu faced questioning in a Singapore court. These legal actions are part of the broader effort by 3AC’s liquidator Teneo to recover $3.5 billion for creditors.

Three Arrows’ Bankruptcy and Debt Burden

Three Arrows Capital filed for bankruptcy in July 2022, driven by the collapse of the Terra ecosystem. With creditors owed a staggering $3.5 billion, the financial turmoil triggered legal proceedings and asset freezes.

Navigating Legal Challenges and Global Repercussions

The freezing orders, coupled with legal actions in both BVI and Singapore, highlight the intricate global legal challenges faced by the founders. As Three Arrows Capital’s bankruptcy unfolds, the quest for financial recovery intensifies for creditors and stakeholders alike.

Ongoing Legal Battles and Financial Recovery

The legal saga involving Three Arrows Capital founders unfolds as a multifaceted challenge. The freezing orders, spanning BVI and Singapore, highlight the global nature of financial disputes. Stakeholders keenly watch as legal actions progress, hoping for a resolution that navigates the intricate web of international legal intricacies. The path to financial recovery for creditors remains uncertain amidst the mounting legal complexities.