The liquidators of the company, Teneo Restructuring, have disclosed that a British Virgin Islands court has frozen the founders of the defunct cryptocurrency hedge fund Three Arrows Capital (3AC)’s assets, which total more than $1 billion.
Su Zhu, Kyle Davies, and his wife, Kelly Chen, are all covered by the global court order that was issued on Monday, according to a statement from Teneo via email. For not helping to close down 3AC, Zhu was sentenced to four months in prison in Singapore in September. According to his good behaviour, he should be released this month. When stablecoin issuer Terra collapsed and caused irreversible losses, 3AC filed for Chapter 15 bankruptcy in July of last year.
Teneo has been pursuing a $1.3 billion settlement, and Chen has been included in the directive to pursue all feasible options in order to optimise returns to creditors, whose combined claims exceed $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,” Teneo stated in a statement.
A domestic freezing order was applied to assets located in Singapore on Wednesday by a Singaporean court.