A British Virgin Islands court has issued a worldwide asset freeze order, targeting assets exceeding $1 billion owned by the founders of the now-defunct crypto hedge fund, Three Arrows Capital (3AC). The liquidators of 3AC, Teneo Restructuring, revealed this substantial legal move, which encompasses Su Zhu, Kyle Davies, and Davies’ spouse, Kelly Chen, a report by Bloomberg said.
The order, which was issued on Monday, has far-reaching implications. It specifically applies to Su Zhu and Kyle Davies, both well-known figures in the crypto industry, along with Kyle Davies’ wife, Kelly Chen. Su Zhu recently served a four-month prison sentence in Singapore for his failure to assist in the winding-up process of 3AC. Remarkably, he is slated for release this month due to good behavior. The unfortunate demise of stablecoin issuer Terra led to the insurmountable losses that prompted 3AC to file for Chapter 15 bankruptcy in July of the previous year.
Teneo Restructuring has been actively pursuing the recovery of approximately $1.3 billion. The inclusion of Kelly Chen in the asset freeze order reflects the firm’s determination to exhaust all possible avenues to enhance returns for creditors, whose collective claims exceed a staggering $3 billion.
Teneo Restructuring emphasized the purpose of the court order, stating, “The order is specifically designed to prevent the Founders and Ms. Kelly Chen from disposing of or otherwise dealing with assets in any way that might frustrate eventual enforcement by the liquidators.”
In a parallel development, a Singapore court, reacting to the global asset freeze order, has taken domestic action to freeze assets located within its jurisdiction.
This legal maneuver adds another layer of complexity to the ongoing saga surrounding Three Arrows Capital, Su Zhu, Kyle Davies, and Kelly Chen. The crypto industry, along with the broader financial community, will closely monitor further developments as the liquidators continue their efforts to recoup losses for creditors.
