3AC's Bankruptcy Aftermath: Zhu Su's Wife Liquidates $38.5M Singapore Property as Creditors Circle

The collapse of Three Arrows Capital (3AC) continues to reverberate through Singapore’s luxury real estate market. Tao Yaqiong, spouse of co-founder Zhu Su, has successfully offloaded a high-end mansion on Dalvey Road for $38.5 million—a notable profit compared to the S$28.5 million ($20.63 million USD) she paid just three years prior in 2020.

The transaction, which was finalized in the most recent month following an initiation in July, represents a rare victory for the 3AC inner circle amid an ongoing asset freeze order. Property records confirm that the Dalvey Road residence spans 15,568 square feet and sits near the Singapore Botanic Gardens. The buyer, identified as Chrispianto Karim from the prominent Indonesian Karim family—operators of the Musim Mas Group palm oil enterprise—acquired the renovated luxury property.

The Broader Asset Freeze Context

The successful sale marks an exception to an otherwise comprehensive financial lockdown. Teneo, the liquidator managing 3AC’s bankruptcy proceedings, has secured a global freeze on approximately $1.14 billion in assets belonging to Zhu Su, co-founder Kyle Davies, and Davies’ wife Kelly Chen. The creditor claims against the hedge fund total roughly $3.3 billion.

Other key properties remain trapped in litigation. A second mansion on Yarwood Avenue in Singapore, purchased as trustees for S$48.8 million in late 2021, has proven impossible to liquidate. Another smaller holding on Balmoral Road similarly remains untouchable under the freeze restrictions.

How 3AC Rose and Fell

Three Arrows Capital’s trajectory offers a cautionary tale for the digital asset sector. Founded in 2012 by Zhu Su and Kyle Davies, the firm initially operated in foreign exchange derivatives, exploiting micro-pricing discrepancies with minimal profit margins. By 2017, banking restrictions forced a strategic pivot—the company completely redirected its focus toward cryptocurrencies.

This reorientation proved transformative. At its peak, 3AC managed over $18 billion in assets, positioning itself among the world’s premier crypto-focused hedge funds. The portfolio included major holdings in Ethereum, Polkadot, Solana, Avalanche, and WorldCoin. During the 2021 bull market, Zhu Su publicly expressed ambitions to acquire Singapore’s finest residential properties.

The 2022 bear market shattered these aspirations. With excessive leverage amplifying downside exposure, 3AC’s fate was sealed when Luna and UST tokens imploded. Margin calls flooded in from lenders, but the fund lacked sufficient collateral to respond. By mid-2022, Three Arrows Capital was insolvent.

Regulatory consequences followed swiftly. In 2023, Singapore’s Monetary Authority (MAS) imposed a nine-year ban on both Zhu and Davies from participating in regulated financial activities. Zhu additionally faced legal jeopardy related to his resistance in winding down the fund’s remaining operations.

The Dalvey Road property sale represents one of few successful asset recoveries in what remains an ongoing liquidation saga for creditors awaiting compensation on their billions in claims.