$40 Million Dubai Property Sale Proceeds Targeted by 3AC Liquidators, Zhu Su's Wife Sued

Odaily News: Three Arrows Capital (3AC), the crypto hedge fund currently in liquidation, is suing Evelyn Tao Yaqiong, the wife of co-founder Zhu Su, seeking to recover approximately AED 146 million (about $40 million) from the sale of a Dubai property. The liquidators stated that the property was purchased approximately three weeks before 3AC entered liquidation in June 2022, at a price of around AED 110 million (about $30 million). The funds are suspected to have originated from a $50 million cryptocurrency loan Zhu Su obtained 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 it in January 2024 for approximately $40 million. The 3AC liquidators believe that Zhu Su's transfer of the property was intended to place assets beyond the reach of creditors and liquidators, and allege that he breached fiduciary duties by transferring company funds to purchase assets. Zhu Su's wife denies the allegations, stating that she was unaware of the source of funds or any alleged misconduct by Zhu Su, and claims that the property was a personal gift to her. She also stated that the couple had been separated since 2022 and believes she is entitled to the proceeds from the property sale. Three Arrows Capital collapsed in 2022 amid the crypto market downturn, owing creditors more than $3 billion. Liquidators have previously sought to recover approximately $1.3 billion in assets from the two co-founders.