The world of crypto companies and hedge funds has been rocked by the legal saga surrounding Three Arrows Capital (3AC) and its co-founders.
A recent court order in the British Virgin Islands has frozen about $1.14 billion in assets belonging to Su Zhu, Kyle Davies and Davies’ wife, Kelly Chen, official sources recently revealed.
This measure is taken amid accusations that the founders are responsible for the financial collapse of 3AC, which has accumulated an estimated debt of about $3.3 billion.
3AC Once a giant in the world of cryptocurrency hedge funds.
The story of 3AC changed drastically in 2022 due to unfortunate financial decisions.
The fund’s implosion was a reflection of a series of bad bets in a volatile cryptocurrency market, contributing to the triggering of a broader sector crisis.
The accusations presented by the liquidators indicate that the co-founders should be held responsible for deteriorating the financial situation of 3AC in proportion to the value of the frozen assets.
These claims have triggered significant legal measures, including asset freezes in both the British Virgin Islands and Singapore, where Su Zhu was arrested in September while attempting to leave the country.
The reputation and fortune of Zhu and Davies, once leading figures during the rise of the cryptocurrency market, have taken a significant hit.
They have been banned from carrying out any regulated activity in Singapore, as they face an intensifying legal battle.
This case not only highlights the unfortunate outcome of a once prominent company, but also highlights the severe repercussions that individuals involved in the financial world can face.
The case of Three Arrows Capital and its co-founders, mired in accusations and court orders, serves as a stark reminder of the devastating consequences that can result from risky financial decisions.
