The founders of Three Arrows, a cryptocurrency investment firm, have had $1 billion in assets frozen by a court in the British Virgin Islands.

The asset freeze is part of a worldwide court order, preventing the founders from transferring or selling assets up to $1.14 billion.

The firm's collapse in 2022 led to a broader crypto market downturn and the founders are now facing legal actions and banned from regulated activities in Singapore.

Founders Su Zhu and Kyle Davies have launched a crypto bankruptcy claims trading exchange despite the bans.

This case highlights the need for stricter regulation and due diligence in the cryptocurrency industry.

Liquidators are seeking to reclaim $1.3 billion from Zhu and Davies, with findings from the ongoing investigation into Three Arrows' collapse to be disclosed to the creditors.

The collapse of Three Arrows has resulted in significant repercussions, including Voyager Digital's bankruptcy and over $3 billion in damages in the cryptocurrency industry.