The founders of a failed crypto hedge fund have been hit with a billion-dollar asset freeze, the Wall Street Journal reported. Su Zhu and Kyle Davies, who ran collapsed crypto hedge fund Three Arrows Capital, have been ordered by a British Virgin Islands court not to sell assets worth $1.144 billion, according to Teneo, the liquidator of the fund. The order also names Kelly Chen, Davies's wife. It is the latest effort by Teneo to seize assets from Zhu and Davies after the failure of Three Arrows, which made the duo deeply controversial figures in crypto. Zhu was held by Singaporean authorities in September, after Teneo won a court order. After two months, he was transferred from prison to home detention to serve the rest of the sentence. He was released earlier this week. Teneo said that the assets it wants frozen are intended to cover fund losses that the founders could have prevented. The freeze prevents Zhu from selling two properties in Singapore, while Davies and Chen can't dispose of one unit in the country, according to court documents. Zhu, Davies and Chen can each spend up to $10,000 a week to cover living expenses, but must let Teneo's lawyers know where the money will come from, the documents say.
