Tao Yaqiong, the wife of the co-founder of the hedge fund Three Arrows Capital, sold her Singapore mansion for $38.5 million, despite a court-ordered asset freeze.
Sale of Singapore Mansion
Tao Yaqiong, also known as Evelyn, initiated the sale process of her mansion in July, finalizing it last month. She purchased the property in 2020 for S$28.5 million, equivalent to $20.63 million at the time. The luxury bungalow, located on Dalvey Road near the Singapore Botanic Gardens, spans 15,568 square feet. Yaqiong renovated it after purchase. The mansion was bought by Chrispianto Karim, a member of Indonesia's Karim family, who runs the Musim Mas Group. Creditors of Three Arrows acquired a global freeze order on assets worth $1.14 billion, belonging to Zhu Su, Kyle Davies, and his wife Kelly Chen, but Yaqiong managed to complete the sale nonetheless.
What Happened to Three Arrows Capital
Three Arrows Capital was founded in 2012 by Zhu Su and Kyle Davies and initially focused on forex derivative price discrepancies. However, after 2017, it shifted to cryptocurrencies due to bank restrictions. At its peak, 3AC managed over $18 billion in assets, investing heavily in projects such as Ethereum, Polkadot, and Solana. However, by 2022, the firm collapsed due to a market downturn and excessive borrowing, which it couldn't repay.
Reasons for 3AC Collapse
During the last bull run, Zhu Su discussed buying properties in Singapore. However, the prolonged bear market in 2022, coupled with the collapse of Terra Luna and FTX, proved disastrous for the company. Burdened by debts and investments in LUNA and UST tokens, 3AC could not meet margin calls and ultimately went bankrupt. In 2023, Singapore's Monetary Authority banned Zhu and Davies from regulated financial activities, with Zhu facing jail time for non-cooperation in shutting down the firm.
The incident highlights the volatility of the cryptocurrency industry, where rapid growth can quickly turn into a crisis due to various factors. The 3AC example underscores the importance of strategic management and risk assessment in a rapidly evolving economic environment.
