SOME US$1.1 billion worth of assets of Three Arrows Capital’s founders, Su Zhu and Kyle Davies, as well as Davies’ wife Kelly Chen, have been issued a worldwide freezing order by a court in the British Virgin Islands on Monday (Dec 18).

The Singapore Court on Wednesday granted a domestic freezing order, stating that the three individuals’ assets in Singapore should be covered by the same restriction.

The freezing order aims to prevent the three from disposing of or dealing with the assets in any way that might “frustrate eventual enforcement” by the liquidators to maximise returns to creditors of the failed crypto hedge fund, said Teneo, a financial advisory firm, on Thursday.

Its senior managing directors Russell Crumpler and Christopher Farmer were appointed by the court in the British Virgin Islands as liquidators handling the case in 2022.

“It also sends a clear signal to counterparties and affiliates of the founders of Three Arrows as to their legal obligations and risks,” Teneo added.

The order came as Zhu finished his imprisonment on Wednesday. He was arrested on Sep 29 for failing to comply with a court order to cooperate on the liquidation.

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Teneo noted that the inclusion of Davies’ wife Chen under the freezing order marks a step forward by the liquidators, as “the understanding of the activities founders and their associates develops”.

Teneo highlighted that the claims by Three Arrows’ creditors into the crypto hedge fund’s liquidation remain in excess of US$3 billion.

“It remains open for the founders and Chen to appear before the British Virgin Islands or Singapore courts to contest the orders and/or proceedings,” the liquidator added.