Three Arrow's Disgraced Wife Cashes Out On $38M Crib Despite Court Imposed Freeze on Assets

The wife of Zhu Shu, the co-founder of the collapsed cryptocurrency hedge fund Three Arrows Capital, has just sold off her $51 million mansion despite a court-imposed freeze against some of the couple's assets.

The sale by Tao Yaqiong, was first inked in July and completed last month, according to the research by Bloomberg News. The 1446 square meter bungalow sits on Dalvey Road, near the Singapore Botanic Gardens. Tao first bought the house base in 2020 for $28.5 million and has since redeveloped it.

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Zhu, together with his co-founder Kyle Davies, once built the 3AC empire into one of the world's largest crypto-native hedge funds. But the company burst in 2022 after a series of bad bets, amid a broader crypto rout and a spate of collapses in the sector.

Zhu's fortunes further worsened after he started buying multiple good class bungalows in Singapore. In 2023 , Singapore Financial regulator imposed a nine-year ban on Zhu and Davies from conducting regulated financial activities in Singapore.

Zhu was also jailed for a few months after failing to cooperate with the task of winding up Three Arrows.

Teneo, the liquidators of 3AC, successfully sought a worldwide $1.14 billion freeze on the asssets of Zhu, Davies and Davies' wife Kelly chen last year, arguing that creditors are owned roughly amounts to $3.3 billion.

Zhu and his wife were also forced to sell another of their mansions at Singapore's Yarwood avenue, which Zhu bought for $48.8 million in late 2021. The couple sold that mansion in 2022, and it was also reported that Zhu had other properties in Balmoral Road.

The Dalvey house was recorded to be purchased by Christpianto Karim, a Singapore citizen. The Business Times reported the transaction, revealing that he is a member of the Indonesian Karim family, which controls Musim Mas Group, a palm oil conglomerate headquartered in Singapore.

Making use of the loophole in the law

This news has left many investors enraged.

Many are saying that Zhu and his wife have made use of a legal loophole to earn themselves money, while investors are left with nothing in their pocket.

The fact that Zhu and his wife were able to sell this high-end property while their assets are subjected to a court-imposed freeze, seems to already raise questions about the fairness and transparency of the asset recovery efforts.

Investors are also also seeing the sale as a loophole that allowed the family to liquidate a valuable asset potentially moving the proceeds out of reach of creditors. Many are hence that Zhu and his associates are not serious about holding themselves accountable to their investors who unfortunately lose their money while Zhu is able to liquidate his assets.

Additionally, Zhu's history of opulent real estate purchases, along with social media statements boasting about luxury acquisitions, has amplified the perception of financial recklessness. And this for creditors is a huge blow, that Zhu is just not going to return their money.