BVI court freezes Three Arrows Capital founders’ $1 billion in assets

A British Virgin Islands court has frozen up to $1.1 billion worth of assets belonging to Su Zhu and Kyle Davies — the founders of defunct crypto hedge fund Three Arrows Capital — as well as Davies’ wife.

The company’s liquidator Teneo said today in a statement shared with The Block that the BVI court made the order on Dec. 18 to prevent the two founders and Davies’ wife Kelly Chen from dealing with their assets worldwide.

“The worldwide freezing order has been sought in connection with claims that are being pursued by the liquidators that allege, amongst other things, that the Founders should be held responsible for causing 3AC’s position to deteriorate by an amount that is equivalent to the value of the freezing orders sought,” Teneo said.

Teneo noted that a Singapore court also granted a domestic freezing order on Wednesday.

The BVI court order comes after Zhu was arrested at Singapore’s Changi airport in September while trying to travel out of the country. Zhu faced questioning in a Singapore court last week, responding to 3AC’s liquidator Teneo as it seeks to reclaim $3.5 billion for creditors.

Three Arrows filed for bankruptcy in July 2022 after the crypto markets were thrown into turmoil by the collapse of the Terra ecosystem. The firm owed creditors at least $3.5 billion , according to documents filed at the time.