3AC Co-founders Assets Worth Up To $1.144 Billion Frozen

Key Points:

• A court in the British Virgin Islands freezes $1.144 billion in global assets belonging to Three Arrows Capital co-founders Su Zhu and Kyle Davies.

• The 3AC co-founders assets freeze is part of liquidation efforts following 3AC’s 2022 collapse.

• Three Arrows Capital’s downfall amid a depressed crypto market becomes a catalyst for broader industry collapses, highlighting challenges in the crypto sector.

In a recent development, a British Virgin Islands court has taken a significant step in the aftermath of the collapse of Three Arrows Capital (3AC), a crypto hedge fund that faced a tumultuous downfall in June 2022.

British Virgin Islands Court Orders Freeze on 3AC Co-Founders Assets

Su Zhu and Kyle Davies, the co-founders of 3AC, are now facing the freezing of approximately $1.144 billion in global assets.

The court’s decision, announced on May 22, is part of the ongoing liquidation proceedings for Three Arrows Capital. The crypto hedge fund, once valued at around $1 billion, crumbled under the weight of the depressed crypto market and the exposure of its long-only trading strategy.

As part of the liquidation process, the 3AC co-founders assets have been ordered to be disposed of in the British Virgin Islands. This move aims to provide relief to creditors and customers who were adversely affected by the collapse of Three Arrows Capital in 2022. To expedite the liquidation process, the co-founders are mandated to furnish liquidators with all relevant documents pertaining to the firm’s bankruptcy by April 14.

The collapse of Three Arrows Capital was a pivotal moment in the crypto landscape, marking the onset of a crypto winter that triggered similar collapses in various crypto firms. The hedge fund estimated 3AC co-founders assets at approximately $1 billion, significantly lower than its liabilities, which amounted to a staggering $3 billion.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.