3AC Co-founders’ Assets Worth $1 billion Frozen by Court

The order aligns with the ongoing efforts of the hedge fund’s court-appointed liquidator to recoup assets and initiate repayments.

Su Zhu enclosed in a frozen globe floating in space surrounded by money symbols made out of ice.
Created by Gabor Kovacs from DailyCoin
  • A British Virgin Islands court has ordered the asset freeze of Three Arrows Capital co-founders.
  • The court order prevents the co-founders and their families from making asset transfers or sales.
  • Three Arrows Capital owes an estimated $3.3 billion to creditors.

The fallout from the downfall of the ill-fated hedge fund Three Arrows Capital has spurred a series of legal proceedings against its co-founders, Su Zhu and Kyle Davis. After several months of the duo’s evasive maneuvers, Singaporean authorities cracked down on Zhu in September 2023, slapping them with a four-month prison sentence.

As part of the ongoing process to bring Davies and Zhu to justice and recoup assets for the repayment of 3AC’s extensive list of creditors, the co-founding pair have now been targeted in a court-ordered asset freeze.

3AC Founders’ Billion-Dollar Blanket Freeze

According to a Bloomberg report on Thursday, December 21, the British Virgin Island Court issued an order restricting both Zhu and Davies from transferring or selling assets totaling up to $1.14 billion.


The order comes on the heels of the estimation that 3AC is indebted to creditors to the tune of $3.3 billion, aligning with the efforts of the court-appointed 3AC liquidator Teneo to recoup the hedge fund’s assets and initiate repayments. 

“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 said.

The asset freeze extends its impact to include Kyle Davies’ wife, Kelly Chen, restricting her access to assets on a global scale. At the same time, her partner’s whereabouts remain elusive since the collapse of 3AC. 

What Happened to 3AC?

The July 2022 collapse of Three Arrows Capital, once a Singapore-based crypto market giant, marked a tumultuous chapter for the industry, resulting in the loss of nearly $2 trillion in assets.


Following a series of risky bets further complicated by the Terra Luna collapse in the same year, 3AC filed for bankruptcy in the Virgin Islands, folding with an extensive list of 27 creditors.

Both Su Zhu and Kyle Davies have been accused of significant foul play and handed a hefty nine-year ban by Singaporean authorities. The ban prohibits the pair from engaging in regulated business activities, such as holding managerial and directorial positions or participating as major shareholders in regional capital markets.

Beyond the ban, Singapore has also reportedly issued a domestic freeze on assets belonging to 3AC and its co-founders. 

On the Flipside

  • Su Zhu is serving time in Singapore, but recent updates suggest an imminent release based on his “good behavior.”
  • The co-founders contested the allegations against them, asserting their actions were in the best interest of stakeholders.
  • Celsius, Voyager Digital, and Genesis are among the largest creditors of 3AC.

Why This Matters

The freezing of 3AC co-founders’ assets is a critical step in repaying creditors who suffered from the 3AC collapse.

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Read more on the hunt for Three Arrows Capital: 
3AC Liquidators on the Hunt for Three Arrows Capital Assets

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Grace Abidemi

Grace Abidemi, a cryptocurrency reporter at DailyCoin, covers industry developments and trends. She previously worked as a freelance writer. With a Bachelor's degree in German Language and certifications in marketing and storytelling, Grace creates engaging content. When not working, she's in Nigeria, mastering cooking and canvas painting, and enjoys learning about different cultures and languages.