Details of the $40M Claim
Published 8/5/2026, 2:39:09 AM
The liquidators of Three Arrows Capital (3AC), Teneo, have initiated a US$40 million recovery claim against Evelyn Tao (Tao Yaqiong), the wife of 3AC co-founder Zhu Su. The claim alleges that a Dubai villa was purchased using misappropriated company funds just weeks before the firm's collapse in June 2022 [Source: https://www.businesstimes.com.sg/companies-markets/capital-markets-currencies/three-arrows-going-after-founder-zhu-sus-wife-us40-million-dubai-property-sale]. While the legal action is active, the recovery remains uncertain as liquidators must prove the funds used were a fraudulent transfer intended to shield assets from creditors.
Details of the $40M Claim
The recovery effort centers on a luxury villa in Dubai purchased for 110 million dirhams (~US$30 million) in June 2022. Liquidators allege the purchase was funded by a "purported loan" of US$50 million in cryptocurrency taken from 3AC by Zhu Su approximately three weeks before the firm entered liquidation [Source: https://www.businesstimes.com.sg/companies-markets/capital-markets-currencies/three-arrows-going-after-founder-zhu-sus-wife-us40-million-dubai-property-sale].
| Metric | Details |
|---|---|
| Claim Amount | US$40 million |
| Property Purchase Price | 110 million dirhams (~US$30 million) |
| Alleged Funding Source | US$50 million crypto "loan" from 3AC |
| Transaction Timing | June 2022 (3 weeks prior to liquidation) |
| Target of Claim | Evelyn Tao (Wife of Zhu Su) |
Legal Context and Asset Freezes
The Dubai claim is part of a broader strategy to recover approximately US$3.3 billion for 3AC creditors.
- Worldwide Asset Freeze: In December 2023, a British Virgin Islands (BVI) court issued a US$1.1 billion worldwide asset freeze against Zhu Su, co-founder Kyle Davies, and Davies' wife, Kelly Chen [Source: https://www.businesstimes.com.sg/companies-markets/capital-markets-currencies/three-arrows-going-after-founder-zhu-sus-wife-us40-million-dubai-property-sale].
- Singapore Property Sale: Despite the freeze, Evelyn Tao successfully sold a "Good Class Bungalow" in Singapore for S$51 million (~US$38.5 million) in late 2024 [Source: https://www.bloomberg.com/news/articles/2024-11-02/disgraced-three-arrows-founder-zhu-su-s-wife-sells-38-million-singapore-mansion]. This sale was possible because that specific property was not covered by the initial 2023 freeze order.
Likelihood of Recovery
The likelihood of recovering the $40 million depends on the liquidators' ability to successfully argue in court that the villa was acquired through a fraudulent transfer. The fact that Evelyn Tao has already successfully navigated legal hurdles to sell a high-value Singapore mansion suggests significant legal resistance to these recovery efforts [Source: https://www.bloomberg.com/news/articles/2024-11-02/disgraced-three-arrows-founder-zhu-su-s-wife-sells-38-million-singapore-mansion]. Furthermore, Zhu Su has already served a four-month prison sentence in Singapore for failing to cooperate with liquidators, indicating a history of non-compliance that complicates the recovery process.
As of August 2026, the claim is ongoing, and no final judgment or settlement regarding the $40 million Dubai-linked funds has been reported.