Three Arrows Capital Liquidator Sues Zhu Su's Wife, Seeks to Recover Proceeds of Around $40 million from Dubai Property Sale

August 5th, according to The Business Times report, the liquidated crypto hedge fund Three Arrows Capital (3AC) is suing co-founder Zhu Su's wife, Evelyn Tao Yaqiong, to recover proceeds from the sale of a Dubai property totaling about 1.46 billion dirhams (approximately $400 million).

The liquidators stated that the property was purchased approximately three weeks before 3AC entered liquidation in June 2022, with a purchase price of around 1.1 billion dirhams (approximately $300 million), suspected to be funded by a $50 million cryptocurrency loan Zhu Su received from 3AC. In October 2023, while Zhu Su was serving a prison sentence in Singapore, he transferred ownership of the property to his wife, who then sold the property for about $400 million in January 2024.

The 3AC liquidators believe that Zhu Su transferred the property to evade the claims of creditors and liquidators, accusing him of transferring funds from the company to purchase assets in breach of fiduciary duty. Zhu Su's wife denied the allegations, claiming she was unaware of the source of funds or Zhu Su's alleged misconduct, and stating that the property was a gift of her personal assets. She also mentioned that the two had separated as early as 2022 and believed she had the right to the proceeds from the property sale.

In 2022, Three Arrows Capital collapsed due to a crypto market crash, currently owing creditors over $30 billion. The liquidators had previously sought to recover approximately $1.3 billion in assets from the two co-founders.