Three Arrows Capital Co-founder Su Zhu Arrested at Singapore Airport
In Brief
Zhu Su, co-founder of the now-defunct cryptocurrency hedge fund Three Arrows Capital (3AC), was arrested while attempting to leave Singapore.
He received a four-month prison sentence for failing to comply with a court order related to 3AC’s liquidation.
Zhu Su, one of the co-founders of bankrupt cryptocurrency hedge fund Three Arrows Capital (3AC), has been arrested at Changi Airport in Singapore while attempting to leave the country.
He has been sentenced to four months in prison for failing to comply with a court order related to the liquidation of 3AC. Meanwhile, his co-founder, Kyle Davies, remains missing.
The fund, once led by the crypto billionaires, collapsed in 2022 after significant losses from the crash of cryptocurrencies Luna and TerraUSD.
The development came after 3AC’s joint liquidator, Teneo, applied for and obtained the committal order against Zhu for his “deliberate failure” to cooperate with the liquidators’ investigations, as required by a court order. Zhu was expected to account for his activities as a co-founder and former investment manager of 3AC.
During Zhu’s prison term, liquidators will focus on engaging with him to recover assets belonging to 3AC or acquired using the fund’s funds. Teneo may also seek further court orders as necessary. Throughout this process, the liquidators’ primary goal remains the recovery of 3AC’s assets to maximize returns for its creditors.
The Monetary Authority of Singapore (MAS) had previously banned Zhu and his co-founder Kyle Davies from engaging in regulated investment activities for nine years, effective September 13. The duo, once considered crypto billionaires, faced the downfall of 3AC in 2022 due to substantial losses from the crash of cryptocurrencies Luna and TerraUSD. After facing financial troubles, 3AC was directed to initiate a liquidation process.
Furthermore, the Monetary Authority of Singapore (MAS) issued a reprimand to 3AC for multiple violations, including providing false information to MAS, failing to report changes in its directors’ composition and shareholdings, and surpassing the permissible threshold for assets under management set for a registered fund management company.
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About The Author
Agne is a journalist who covers the latest trends and developments in the metaverse, AI, and Web3 industries for the Metaverse Post. Her passion for storytelling has led her to conduct numerous interviews with experts in these fields, always seeking to uncover exciting and engaging stories. Agne holds a Bachelor’s degree in literature and has an extensive background in writing about a wide range of topics including travel, art, and culture. She has also volunteered as an editor for the animal rights organization, where she helped raise awareness about animal welfare issues. Contact her on agnec@mpost.io.
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Agne is a journalist who covers the latest trends and developments in the metaverse, AI, and Web3 industries for the Metaverse Post. Her passion for storytelling has led her to conduct numerous interviews with experts in these fields, always seeking to uncover exciting and engaging stories. Agne holds a Bachelor’s degree in literature and has an extensive background in writing about a wide range of topics including travel, art, and culture. She has also volunteered as an editor for the animal rights organization, where she helped raise awareness about animal welfare issues. Contact her on agnec@mpost.io.
