ChainThink reports that on August 5, according to The Business Times, the liquidators of Three Arrows Capital (3AC) have sued Evelyn Tao Yaqiong, wife of co-founder Zhu Su, seeking to recover approximately 146 million dirhams (about $40 million) from the sale of property in Dubai.
The liquidator stated that the property was purchased approximately three weeks before 3AC entered liquidation on June 3, for around 110 million dirhams (approximately $30 million), with funds allegedly sourced from Zhu Su’s $50 million cryptocurrency loan from 3AC.
In October 2023, while serving a sentence in Singapore, Zhu Su transferred ownership of the property to his wife; the property was subsequently sold in January 2024 for approximately $40 million.
The 3AC liquidators believe that Zhu Su transferred real estate to remove assets from the reach of creditors and liquidators, and accuse him of violating fiduciary duties by transferring company funds to purchase assets.
Evelyn Tao Yaqiong denies the allegations, stating that she was unaware of the source of the funds or any alleged misconduct by Zhu Su, and that the property was a personal gift to her.
Three Arrows Capital collapsed in 2022 due to the cryptocurrency market downturn and currently owes creditors over $3 billion. The liquidators previously sought to recover approximately $1.3 billion in assets from the two founders.