Liquidators for Three Arrows Capital, a Singapore-founded crypto hedge fund in liquidation, are suing its co-founder’s wife Evelyn Tao Yaqiong for 146 million dirhams (US$40 million) from the January 2024 sale of a Dubai villa.

They said co-founder Zhu Su bought the property with a purported US$50 million cryptocurrency loan from the firm.

The April 23 suit said Zhu bought the villa about three weeks before Three Arrows entered liquidation in June 2022 and transferred it to Tao on or around October 26, 2023, without payment, while he was serving a prison term in Singapore for failing to cooperate with liquidators.

Tao is seeking to strike out the case. She said she did not know of any alleged breach by Zhu and believed the villa was a gift.

Three Arrows collapsed in 2022 after excessive leverage left it unable to meet margin calls as crypto markets fell.

The firm owes more than US$3 billion to creditors, and, as of October 2023, liquidators were seeking to recover US$1.3 billion from its co-founders.

🔗 Source: The Business Times

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