Summary

The founders of crypto hedge fund Three Arrows Capital have had assets worth $1 billion frozen by a court in the British Virgin Islands. The freezing order was granted in connection with claims made by the liquidators that the founders are responsible for causing the fund’s position to deteriorate.

Introduction

The co-founders of Three Arrows Capital, Su Zhu and Kyle Davies, along with Davies’ wife Kelly Chen, have had their assets frozen by a court in the British Virgin Islands. The freezing order was granted after claims were made by the liquidators, alleging that the founders are responsible for the fund’s decline in value. This follows a similar move by the Singapore Court, where the founders have also been barred from participating in any regulated activity.

Main Points

1. The founders of crypto hedge fund Three Arrows Capital have had assets worth $1 billion frozen by a court in the British Virgin Islands.
2. The freezing order was granted in connection with claims made by the liquidators that the founders are responsible for causing the fund’s position to deteriorate.
3. The Singapore Court has also granted a domestic freezing order against the founders, and they have been barred from participating in any regulated activity in Singapore.
4. The founders sought refuge in the British Virgin Islands after the fund’s collapse in 2022 due to bad bets and market conditions.
5. Teneo, the liquidator appointed by the court, has accused the founders of non-cooperation during the bankruptcy process.

Conclusion

The founders of Three Arrows Capital are facing significant legal and regulatory challenges as their assets have been frozen by courts in both the British Virgin Islands and Singapore. The freezing orders were granted in connection with claims made by the liquidators, alleging that the founders are responsible for the fund’s decline in value. This development highlights the risks and challenges faced by participants in the crypto hedge fund industry.