Liquidators for collapsed hedge fund Three Arrows Capital are suing Evelyn Tao, wife of co-founder Zhu Su, to recover $40M tied to a Dubai villa.

The claim: Zhu bought the villa with a $50M loan from the firm, then transferred it to Tao without payment. The liquidators now want the $40M in sale proceeds returned. It is the latest of many moves to recover assets lost in 3AC's 2022 collapse.