A British Virgin Islands court has imposed a freezing order on about $1.14 billion in assets linked to the founders of Three Arrows Capital (3AC), a once-prominent cryptocurrency hedge fund.
Co-founders Su Zhu and Kyle Davies, along with Davies’ wife Kelly Chen, are barred from transferring or disposing of assets up to $1.14 billion to protect creditors owed $3.3 billion.
The freeze follows allegations that the founders’ decisions contributed to 3AC’s financial losses.
Teneo, the appointed liquidator, disclosed that the freeze is connected to claims holding the founders accountable for the fund’s troubles. The order follows a domestic freeze in Singapore and Su Zhu’s arrest in September.
Three Arrows Capital filed for bankruptcy in the British Virgin Islands after facing financial challenges in 2022.
The collapse of Three Arrows Capital reflects broader challenges in the crypto industry, with several prominent figures facing consequences for risky financial practices.
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