Three Arrows Liquidator Sues Zhu Su's Wife for Roughly $40 Million Proceeds from Sale of Dubai Property

Comparatively, according to “The Business Times”, the crypto hedge fund Three Arrows Capital (3AC), which has entered into the liquidation process, is suing Evelyn Tao Yaqiong, the wife of co-founder Zhu Su, to recover a sum of about 146 million dirhams (about 40 million US dollars) of Dubai property sales proceeds.

According to the liquidator, the property was purchased about three weeks before 3AC went into liquidation in June 2022 at a purchase price of about 110 million dirhams (approximately US$30 million), and the funding is suspected to be a $50 million cryptocurrency loan obtained by Zhu Su from 3AC. In October 2023, Zhu Su transferred ownership of the property to his wife while serving a prison sentence in Singapore, and the property was subsequently sold for approximately $40 million in January 2024.

The 3AC liquidator argued that Zhu Su transferred the property to keep the assets out of the scope of creditors and liquidators, and alleges that it transferred funds from the company to purchase assets in violation of fiduciary duties. Zhu Su's wife denied the allegations, saying she was unaware of the source of funds or Zhu Su's alleged irregularities, and claimed that the property was a gift of personal property to her. She also stated that the two separated as early as 2022 and believed they were entitled to the proceeds from the sale of the property.

Three Arrows Capital went bankrupt in 2022 due to the crypto market crash and currently owes more than $30 billion to creditors, and liquidators previously sought to recover around $1.3 billion in assets from the two founders.