3AC liquidators sue Zhu Su's wife over $40 million Dubai property proceeds

Aug. 5 — Liquidators for collapsed crypto hedge fund Three Arrows Capital (3AC) have filed suit against Evelyn Tao Yaqiong, the wife of co-founder Zhu Su, seeking to claw back about 146 million dirhams (roughly $40 million) tied to the sale of a Dubai property, The Business Times reported. According to the liquidators, the property was bought about three weeks before 3AC entered liquidation on June 3 for around 110 million dirhams (about $30 million). They allege the purchase was funded with proceeds from Zhu's $50 million cryptocurrency loan from 3AC. The filing says Zhu transferred ownership to Tao in October 2023 while serving a sentence in Singapore. The property was later sold in January 2024 for about $40 million. Liquidators argue the transfer was intended to place assets beyond the reach of creditors and the liquidation process, and accuse Zhu of breaching fiduciary duties by using company funds to acquire assets. Tao denies wrongdoing, saying she did not know the source of the funds or any alleged misconduct and that the home was given to her as a personal gift. 3AC imploded in 2022 after the crypto market downturn and is said to owe creditors more than $3 billion. Liquidators have previously sought to recover about $1.3 billion in assets from the two founders.