Three Arrows Capital Claims $40 Million in Proceeds from Sale of Dubai Property Owned by Zhu Su's Wife

According to the Business Times, the liquidators of Three Arrows Capital have filed a lawsuit against Dr. Tao Yaqiong, wife of Zhu Su, to recover proceeds from the sale of a Dubai property amounting to approximately $40 million (approximately 146 million UAE dirhams). The liquidators allege that three weeks before Three Arrows Capital entered liquidation proceedings in June 2022, Zhu Su used $50 million worth of cryptocurrency misappropriated from the company to purchase a Dubai property for 110 million dirhams (approximately $30 million), and transferred the property to his wife's name in October 2023 while serving a sentence in Singapore. The property was subsequently sold in January 2024. The liquidators contend that the aforementioned transfer was intended to move assets beyond the reach of the liquidators and creditors, and that Zhu Su failed to disclose the property to the liquidators as required. Dr. Tao denies the relevant allegations, claiming she was unaware of the source of the funds, and has applied to have the lawsuit dismissed on the grounds of being a bona fide donee. Currently, Three Arrows Capital owes creditors over $3 billion, and the liquidators are reportedly seeking to recover approximately $1.3 billion from its co-founders.