A recent report has unveiled a significant real estate transaction involving the spouse of one of the co-founders of the now-defunct Three Arrows Capital (3AC). Despite the financial turmoil surrounding the crypto hedge fund, the spouse successfully sold a luxury mansion in Singapore.
Property Sale Despite Asset Freeze
In a surprising turn of events, Tao Yaqiong, the wife of Zhu Su, co-founder of 3AC, managed to finalize the sale of a prestigious property for an impressive $38.5 million. This transaction occurred notwithstanding a court order that had previously frozen the couple’s assets following the crypto company’s bankruptcy.
Yaqiong, who also goes by the name Evelyn, initiated the sale process in July, with the deal reaching completion in October. The magnificent residential estate, nestled in the coveted area of Dalvey Road near the Singapore Botanic Gardens, stands on a sprawling land area of approximately 1,446 square meters. Bloomberg News reported that Evelyn had originally acquired this property in 2020 for around $20.63 million, highlighting the significant appreciation in its value.
3AC’s Rise And Fall
Three Arrows Capital, co-founded by Zhu Su and Kyle Davies in 2012, emerged as a powerhouse in the cryptocurrency hedge fund industry. The firm quickly rose to prominence, becoming one of the most influential players in the crypto space, renowned for its aggressive investment strategies and substantial holdings in various digital assets.
At its peak, 3AC boasted an impressive portfolio exceeding $18 billion in assets under management. The hedge fund made strategic investments in high-profile cryptocurrencies, including Solana, Ethereum, Avalanche, Polkadot, and WorldCoin, riding the waves of the burgeoning digital currency market.
However, the company’s fortunes took a dramatic downturn in 2022. A sharp decline in cryptocurrency prices, often referred to as the “crypto winter,” led to a substantial erosion of asset values. This financial strain pushed 3AC to file for Chapter 15 bankruptcy, seeking protection from U.S. creditors as the company faced liquidation challenges.
Frozen Assets and Legal Proceedings
In 2023, over a year after the bankruptcy filing, Teneo, the appointed liquidator for 3AC, secured a court order freezing the company’s global assets, totaling approximately $1.14 billion. This legal measure prevented Zhu Su, Kyle Davies, and Davies’ wife Kelly Chen from moving or disposing of any assets.
Teneo further claimed that 3AC had unsettled obligations amounting to $3.3 billion, with the court mandating the liquidator to oversee the bankruptcy proceedings. The liquidator argued that Zhu and Davies should bear responsibility for the financial decline of 3AC, equivalent to the value of the assets targeted by the freezing orders.
Included among the frozen assets is another residential property owned by Zhu and Yaqiong, valued at S$48.8 million, located on Yarwood Avenue in Singapore. The couple purchased this property as trustees in late 2021, adding to the complexities surrounding the asset freeze.
As the legal and financial proceedings continue, the sale of the Dalvey Road mansion stands out as a notable development amid the ongoing challenges faced by the former 3AC co-founder and his family.
This intriguing saga highlights the intricacies of asset management and legal battles in the wake of financial turbulence, particularly within the volatile world of cryptocurrencies.
