This asset freeze was put in place due to claims made by the liquidator, who argues that the founders of Three Arrows Capital should be held responsible for the fund’s financial decline. They believe that the founders should be liable for the value of the assets mentioned in the court order.
Three Arrows Capital was once considered a major player in the cryptocurrency hedge fund industry, but encountered financial difficulties in 2022 following the collapse of the Terra ecosystem. As per the liquidator’s estimates, the fund owes approximately $3.3 billion to its creditors.
The TAC Foundation has filed for bankruptcy in the British Virgin Islands, and Teneo representatives have previously accused Zhu and Davies of obstructing efforts to recover assets. It was reported that the court order in question was issued one day after a Singapore court froze the domestic assets of the TAC founders. Additionally, in September, the Monetary Authority of Singapore (MAS) banned the company from operating for nine years due to securities law violations.
At the end of September, Su Zhu was apprehended at Singapore’s Changi Airport while attempting to leave the country. However, recent news indicates that Zhu will be released from custody due to good behavior.