This article is more than three months old

3AC founders just got $1.1bn in assets frozen as Teneo aims to claw back funds

3AC founders just got $1.1bn in assets frozen as Teneo aims to claw back funds
Snapshot
Efforts to clawback funds from collapsed crypto hedge fund Three Arrows Capital are intensifying.
  • Courts in the British Virgin Islands issued a worldwide freezing order against hedge fund founders Su Zhu and Kyle Davies.
  • The Three Arrows Capital founders, and Davies' wife, will be unable to transfer or sell assets up to a value of $1.14 billion.
  • This is the latest development since Su Zhu was arrested in Singapore in September.

Authorities in the British Virgin Islands issued a worldwide freezing order against crypto hedge fund founder Su Zhu and Kyle Davies this week.

Family affair

The founders of Three Arrows Capital, and Kyle Davies’ wife, are prevented from handling their assets, up to a value of $1.14 billion, Teneo said in a statement shared with DL News.

The freezing order is part of Teneo’s efforts to secure 3AC assets and recover funds from the trio. Teneo is acting as the liquidator for the collapsed crypto hedge fund, which capitulated shortly after the Terra ecosystem collapsed in May 2022.

In September, Su Zhu was arrested in Singapore after he failed to cooperate with Teneo’s liquidation process. Zhu’s time in prison is coming to an end, according to the statement shared by Teneo.

A similar order was also granted against Kyle Davies, although he was never arrested.

This week’s decision, and the inclusion of Davies’ wife, Kelly Chen, marks an escalation in Teneo’s efforts to maximise creditors returns. Outstanding claims against 3AC are in excess of $3 billion.

“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,” the statement said.

Crypto market movers

  • Bitcoin traded above $44,000, up 2.7% since Wednesday.
  • Ethereum gained 2.6% to trade around $2,260.

What we’re reading

Adam Morgan McCarthy is DL News’ London-based Markets Correspondent. Got a tip? Reach out at adam@dlnews.com.

Join the community to get our latest stories and updates