3AC Sues Zhu Su’s Wife Over $40 Million in Proceeds from Dubai Property Sale

Odaily Planet Daily reports that Three Arrows Capital (3AC), the crypto hedge fund already in liquidation, is suing Evelyn Tao Yaqiong, 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 state that the property was purchased about three weeks before 3AC entered liquidation in June 2022, for roughly 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 incarcerated in Singapore, ownership of the property was transferred to his wife, and it was subsequently sold in January 2024 for approximately $40 million. The 3AC liquidators allege that Zhu Su transferred the property to shield assets from creditors and liquidators, accusing him of misappropriating company funds in breach of fiduciary duty. Evelyn Tao denies the allegations, stating she was unaware of the funds’ origin or any alleged misconduct by Zhu Su, and claims the property was a personal gift to her. She also asserts that the couple had been separated since 2022 and maintains her right to the proceeds from the sale. Three Arrows Capital collapsed in 2022 amid the crypto market downturn and currently owes creditors over $3 billion; the liquidators have previously sought to recover approximately $1.3 billion in assets from the two founders.