A British Virgin Islands court has stepped in to prevent Three Arrows Capital (3AC) founders Kyle Davies and Su Zhu from transferring or selling more than $1 billion in assets with creditors still chasing the collapsed fund’s owners for more than $3 billion.
The announcement came one day after a domestic freezing order was issued by a court in Singapore. 3AC operated out of Singapore but filed for bankruptcy in the British Virgin Islands.
According to a statement from 3AC’s liquidator Teneo, $1.4 billion in assets have been frozen while creditors are still owed somewhere in the region of $3.3 billion. Davies’ wife Kelly Chen has also been barred from moving assets.
“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,” the statement read.
Just hours before the assets were frozen, Zhu posted to X (formerly Twitter) that “Autism is an asset, not a liability.”
Autism is an asset, not a liability
— 朱溯 🐂 (@zhusu) December 20, 2023
Read more: Genesis settles with 3AC to pay 96.7% less than the $1B it claimed
In the wake of the court order, he soon found himself being ridiculed by fellow users who pointed out that, if that’s the case, it may be the only asset he has left.
Zhu questioned in court for first time
Earlier this month, lawyers in Singapore questioned Zhu in court for the first time as they continue the search for the billions of dollars of outstanding creditors’ funds.
In a two-day private hearing, Zhu took questions from lawyers representing Teneo and, according to unnamed sources close to the proceedings, questioning focused on how and why 3AC failed and exactly where the missing assets went.
Zhu was arrested under a committal order at Singapore’s Changi Airport in September after he ignored a court order and attempted to flee the country. The order stipulated that both Zhu and Davies were to be arrested on sight and imprisoned for four months.
