SINGAPORE (EDGEPROP) - Rumours are that liquidators are trying to seize the assets of Singapore-based crypto hedge fund Three Arrows Capital (3AC), which became the latest victim of the crash in cryptocurrency. Two partners at advisory and consulting firm Teneo have been appointed to handle 3AC’s liquidation.
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3AC was put under liquidation by a court in the British Virgin Islands on Monday, June 27, after 3AC failed to repay creditors. On June 30, the Monetary Authority of Singapore (MAS) reprimanded the firm for providing false information and for breaching fund management industry licensing rules.
Photo: Su Zhu's Twitter account
The firm was co-founded by former Credit Suisse traders Zhu Su and Kyle Davies at the kitchen table of their apartment in 2012, according to a Bloomberg story last year. The two of them are only in their mid-30s.
Zhu is co-founder, director, CEO and CIO of 3AC, while Davies is co-founder and chairman of the firm. Their crypto assets had reportedly been worth several billion dollars at one point.
The Good Class Bungalow at Yarwood Avenue purchased just last December for $48.8 million (Photo: Samuel Isaac Chua/EdgeProp Singapore)
Location of GCB at Yarwood Avenue (Source: EdgeProp Inspector)
Some of that crypto wealth had gone into real estate over the past few years. According to property title searches, from 2019 to 2021, Zhu purchased three bungalows in Singapore, in his own name and that of his wife, Tao Yaqiong. The purchases totalled $83.55 million.
The latest acquisition was just last December, when Zhu and Tao became joint tenants of a Good Class Bungalow (GCB) purchased in trust of their son, reportedly a three-year-old toddler. The GCB sits on a 31,863 sq ft, 999-year leasehold site at Yarwood Avenue in Kilburn Estate, just off Dunearn Road in prime District 21. The purchase price for the house was $48.8 million ($1,532 psf), according to a caveat lodged on Dec 3, 2021.
The Good Class Bungalow at Dalvey Road is still under construction (Photo: Samuel Isaac Chua/EdgeProp Singapore)
The GCB at Dalvey Road was purchased in Sept 2020 for $28.5 million and had planning permission for redevelopment (Source: EdgeProp Inspector)
That’s not the only GCB Zhu owns. Near Botanic Gardens at Dalvey Road, is a GCB that is currently under construction. The property was purchased for $28.5 million ($1,831 psf) in September 2020, according to a caveat lodged. A property title search shows that it is now held by Tao.
3AC's Zhu is said to own one of the strata bungalows at Goodwood Grand on Balmoral Road (Photo: Albert Chua/EdgeProp Singapore)
Goodwood Grand on Balmoral Road has eight strata bungalows and a condominium block of 65 units (Source: EdgeProp Inspector)
In June 2019, Zhu had purchased a strata bungalow on Balmoral Road for $6.25 million ($1,192 psf). It is held in his own name, according to the property title. With a strata area of 5,242 sq ft, it is one of eight strata bungalows located within Goodwood Grand, a 73-unit development which includes a 65-unit condominium block. Completed in 2017, it was developed jointly by Tong Eng Group, the Ng family of Clarus Group and Tiong Seng Holdings.
Zhu and other parties related to 3AC are known to collectively own five high-end properties, including three GCBs, a shophouse and a townhouse. Other assets include a fleet of high end cars and a yacht.
Late on Friday, representatives for 3AC filed a petition in the US Bankruptcy Court for the Southern District of New York, according to a CNBC report. 3AC is said to be seeking protection from creditors in the US under Chapter 15 of the US Bankruptcy Code, which allows foreign debtors to shield US assets, says the report on Jul 2.
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