BVI court orders $1.1 billion asset freeze on Three Arrows Capital founders
Zhu is set for release based on good behavior this month, while Davies remains at large.
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A British Virgin Islands court has ordered the freeze on assets belonging to Three Arrows Capital (3AC) founders. Teneo, the assigned liquidator for 3AC, first confirmed the court order in an emailed statement to Bloomberg.
The order effectively locks out over $1.1 billion of assets from 3AC co-founders Su Zhu and Kyle Davies, along with Davies’ wife Kelly Chen.
“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 stated.
Teneo further detailed that 3AC owes roughly $3.3 billion to creditors. The liquidator has previously accused Three Arrows of “failing to cooperate meaningfully” in the liquidation process.
The court order follows a similar move by the Singapore Court, which ordered a domestic freeze on Zhu and Davies’ assets. Prior to Zhu’s arrest at Singapore’s Changi Airport in September, 3AC was allowed to operate in the country. Following that, the hedge fund filed for bankruptcy in the British Virgin Islands after receiving nine-year prohibition orders from the Monetary Authority of Singapore.
Last week, Teneo confirmed that court proceedings in the British Virgin Islands had moved forward with the release of Zhu this month based on standard provisions for good behavior. On the other hand, Davies remains at large despite having received an imprisonment and committal order.