Among the world’s biggest crypto-holders is Zhu Su, co-founder of Three Arrows Capital. In its most recent public statement, the fund claimed its net asset value was $18 billion. The fund also moved some of its legal infrastructure to the British Virgin Islands, which has no extradition agreements with either Singapore or the United States. The liquidators of Three Arrows visited the company’s Singapore office in late June and spoke with lawyers for the founders through videoconferencing.
The company’s liquidation is a civil matter, meaning that the court cannot seize the assets of the founders. However, creditors can liquidate the property to cover their debts. The debt recovery process looks at the debtor’s assets and net worth to assess whether the amount owed is sufficient to pay back the loan. If the creditor has no other means of paying the debt, the court may initiate a debt recovery proceeding.
At the height of the fund’s activity, the two alumnus of Columbia University and Credit Suisse were valued at more than $10 billion in assets. They had pooled their savings in 2012 and launched the firm, whose name comes from a Japanese legend. They were enthusiastic advocates of crypto-assets, but heavy losses on trades in TerraUSD and Luna spelled the end of the fund.
The fund had a slew of properties in Singapore, including a mansion in the Balmoral Road area that was reportedly put on the market for $35 million. It is reported that the home is owned by Zhu and his wife, Tao Yaqiong. It is a two-storey house with a basement. The property was built in 1990 and has six bedrooms. The house is being upgraded. It will have a swimming pool and an attic.
Another property Zhu Su owns is a Good Class Bungalow (GCB) located in the Kilburn Estate Area of Singapore. The GCB is a 5,243-square-foot bungalow. The price of the property works out to about S$2,700 per square foot. It is the largest home of its kind in the neighborhood. There are 2,800 good-class bungalows in Singapore. The GCB is a luxury home for the affluent.
The GCB was purchased for $28.5 million in September 2020, and is currently under construction. It is expected to have a swimming pool in the coming year. It will be deemed a trustee of a 3-year-old son.
In April, Three Arrows announced that it was moving its headquarters from Singapore to Dubai. It was also the first company to participate in a private token sale for the Near Protocol, a competitor to Ethereum. The funding round included participation from several major crypto-focused funds. The firm invested $200 million into Luna. Its founder, South Korean developer Do Kwon, is an acquaintance of Davies and Zhu.
The company has been reprimanded by the Monetary Authority of Singapore for breaching regulations. Its founders are also displeased with the way the liquidators are handling the case. They have provided the liquidators with a spreadsheet detailing the company’s assets.