$40 Million Dubai Property Sale Proceeds Pursued 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 146 million dirhams (about $40 million) from the sale of a Dubai property. The liquidators stated that the property was purchased about three weeks before 3AC entered liquidation in June 2022, at a price of approximately 110 million dirhams (about $30 million), with funds allegedly sourced from 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, and the property was subsequently sold in January 2024 for approximately $40 million. 3AC's liquidators believe Zhu Su transferred the property to place assets beyond the reach of creditors and liquidators, and accused him of transferring company funds to purchase assets in breach of fiduciary duties. Zhu Su's wife denied the allegations, stating she was unaware of the fund's source or Zhu Su's alleged misconduct, and claimed the property was a personal gift to her. She also stated that the couple had been separated since 2022 and believed she was entitled to the proceeds from the property sale. Three Arrows Capital collapsed in 2022 due to the crypto market downturn and currently owes creditors over $3 billion, with liquidators previously seeking to recover approximately $1.3 billion in assets from the two founders.