Su Zhu, co-founder of Three Arrows Capital (3AC), was arrested by Singapore authorities while attempting to leave the country. According to Teneo, the joint liquidators of 3AC confirmed the news, stating that the arrest took place at Changi Airport. The arrest followed a committal order against him, granted by the Singaporean courts.
The post further said that the “joint liquidators had applied for and obtained the committal order against Mr Zhu on 25 September 2023”. It also stated that Zhu’s “deliberate failure to comply with a court order” prompted the filing of the committal order. The court order in highlight pushed the co-founder to “cooperate with the liquidators’ investigations. It also stated to account for his activities as one of the founders of 3AC”.
The crypto hedge fund was among the first bigwigs to collapse in the market, with a bankruptcy filing in July 2022. Its downfall was, in turn, triggered by the collapse of the Terra network and its two cryptos – LUNA and UST. Before its collapse, the company was managing nearly $10 billion in assets, but the fall of Terra erased a majority of these numbers. Moreover, this incident had a ripple effect on other crypto firms in the market, triggering a bankruptcy era with customers losing most of their money.
Prison time for 3AC founders
The recent action has resulted in a four-month prison sentence for Zhu. Notably, this current situation also applies to Kyle Levingston Davies, the other co-founder of 3AC. However, the whereabouts of Davies currently remain unknown. Teneo’s press release, posted by db, said,
“The committal order against both Mr Zhu and Mr Davies directs any Police Officer to arrest them and to bring them safely to be imprisoned for 4 months.”
Furthermore, during his prison time, the liquidators will seek to engage in matters related to the bankrupt crypto platform. The focus of this engagement would be on recovering 3AC’s assets, including the one acquired through the firm’s funds.
Prior to this action, Singapore’s regulatory authorities released an order barring the 3AC founders from starting any engaging in regulated business activities. The restriction lasted for nine years. Additionally, the Monetary Authority of Singapore (MAS) claimed Davies and Zhu violated the Securities Act.