Singapore, September 29, 2023 – Three Arrows Capital (3AC) co-founder Su Zhu was apprehended by Singaporean authorities at Changi Airport on Friday as he attempted to leave the country. The arrest came in response to a committal order issued by a Singapore court on September 25, sentencing Zhu and his fellow co-founder, Kyle Davies, to four months in prison. The liquidator for the bankrupt crypto hedge fund, Teneo, provided this information.
Teneo revealed that the committal order was sought due to Zhu’s “deliberate failure to comply with a court order” that required him to cooperate with the liquidators’ investigations and account for his activities as a founder and former investment manager of 3AC.
As of now, Kyle Davies’ whereabouts remain unknown, leaving questions about his legal status unanswered.
Zhu will serve his four-month sentence in prison while liquidators continue their efforts to recover assets from 3AC and satisfy creditors. In June, Teneo sought $1.3 billion from Zhu and Davies, accusing them of accumulating additional debt despite 3AC’s insolvency.
The collapse of Three Arrows Capital, linked to the Terra Luna ecosystem’s failure in May 2022, sent shockwaves through the crypto market, leading several major crypto investors, including Voyager Digital, Celsius Network, and Genesis Asia Pacific, to file for bankruptcy protection.
On September 13, the Monetary Authority of Singapore (MAS) banned Zhu and Davies from participating in regulated investment activity for nine years.
Amid ongoing legal disputes, the liquidators affirmed their determination to ensure Zhu’s compliance with the court order during his imprisonment and beyond, signaling a potentially protracted legal battle ahead.
