A court in the British Virgin Islands has issued a worldwide freezing order against Three Arrows founders Su Zhu and Kyle Davies, as well as Davies’ wife, Kelly Chen. The order stemmed from the ongoing efforts by Three Arrows’ liquidator, Teneo, to secure the firm’s assets, seek recoveries from the firm as well as meet its obligations to its various creditors.
The order prevents the trio from dealing with their assets – including transferring or selling them – up to a value of US$1.14 billion. It was specifically designed to prevent the founders and Chen from disposing of or dealing with the assets in a way that may frustrate the eventual enforcement by the liquidators.
The request for the order was made in relation to allegations that the Three Arrows founders should be held accountable for causing the company's position to decline by a sum equivalent to the freezing orders being pursued.
A domestic freezing order was granted by the courts in Singapore on Dec 20 without the founders being present. The order states that any assets held by the trio in Singapore should be covered by the same restrictions.
