Three Arrows Capital (3AC) liquidators have filed suit against Zhu Su’s wife, Dr. Tao Yaqiong, to recover about $40 million in proceeds from the sale of a Dubai property, according to Commercial Times as cited by BlockTempo.
The claim focuses on a Dubai property transaction
The liquidators allege that in June 2022, three weeks before 3AC formally entered liquidation, Zhu Su used $50 million in misappropriated company crypto assets to buy a Dubai property for AED 110 million, worth about $30 million at the time.
In October 2023, while serving a sentence in Singapore, Zhu transferred the property to Tao. The property was then sold in January 2024. The liquidators argue that the transfer was meant to place the asset beyond the reach of liquidators and creditors, and that Zhu did not disclose the existence of the property as required.
The report also points to an unexplained gap in the figures. The liquidators say $50 million in crypto assets was misappropriated, while the property purchase price was about $30 million. The remaining roughly $20 million was not explained in the report.
Tao denies the allegations and seeks dismissal
Tao has denied the claims on two main grounds. She says she did not know the source of the funds, and she argues that she was a good-faith recipient of the transfer. On that basis, she has asked the court to dismiss the lawsuit.
The report notes that in asset recovery cases of this kind, that is a standard line of defense. Liquidators usually need to show that the recipient knew or should have known about the source of the funds, not just that the funds themselves were problematic. Whether the case proceeds to a full hearing may depend first on the outcome of Tao’s dismissal request.
Assets in a spouse’s name have appeared before
Tao is not appearing in the 3AC asset picture for the first time. The report says Zhu Su bought three luxury bungalows in Singapore between 2019 and 2021, with title registered under his and his wife’s names, for a combined price of about S$83.55 million.
In November 2024, Tao sold one of them on Dalvey Road for S$51 million, or about $38 million, after a global asset freeze order had already taken effect. According to the report, a large part of the liquidators’ work in recent years has involved assets registered under spouses’ names.
A four-year recovery fight is still running
The lawsuit sits within a broader recovery campaign that has stretched across four years. In December 2023, a Singapore court granted liquidator Teneo a global asset freeze order against Zhu Su, Kyle Davies, and Davies’ wife Kelly Chen, covering $1.14 billion.
The liquidators are currently seeking about $1.3 billion from the two co-founders, while 3AC owes creditors more than $3 billion. Teneo had previously estimated a creditor recovery rate of about 46%, and whether that figure can be realized depends in part on cases like this one.
The founders have also pushed back in court. In June 2025, Zhu Su and Kyle Davies won a partial victory in Singapore’s appellate court. The court set aside an examination order obtained by the liquidators, but left in place an order requiring the pair to disclose information related to 3AC.
The report says 3AC’s collapse is now four years in the rearview, and the most straightforward phase of the liquidation process has long passed. With claims shifting from the founders themselves to their spouses, and from Singapore homes to proceeds from a Dubai property sale, the recovery battle remains active.
The allegations described here were made by the liquidators in court filings and have not been established by a court ruling. Tao has denied the claims and asked the court to dismiss the case.