Su Zhu, co-founder of the cryptocurrency hedge fund Three Arrows Capital (3AC), found himself in the custody of Singaporean authorities as he attempted to depart the country. This unexpected arrest comes on the heels of a committal order issued by the Singaporean courts, compelling Zhu to assist liquidators in unraveling the mysteries surrounding 3AC’s operations.
Teneo, the joint liquidators overseeing 3AC’s winding-down process, have officially confirmed Zhu’s arrest, which unfolded amidst the hustle and bustle of Changi Airport. Shedding light on the committal order’s origins, it was revealed that it was secured on September 25, 2023, as a result of Zhu’s failure to adhere to a previous court directive. This legal mandate now squarely places responsibility on Zhu’s shoulders for his role as a founding member of 3AC.
3AC, once a titan in the cryptocurrency realm, endured a somber downfall when it filed for bankruptcy in July 2022. The catalyst for this fall from grace was the cataclysmic collapse of the Terra network, along with its associated digital currencies, LUNA and UST. At the height of its success, 3AC skillfully managed nearly $10 billion in assets, but Terra’s demise triggered a domino effect, adversely impacting countless investors.
The recent legal actions against Su Zhu have culminated in a four-month prison sentence. Meanwhile, the fate of Kyle Levingston Davies, the other co-founder of 3AC, remains shrouded in mystery, with his whereabouts undisclosed. Teneo’s press release firmly stated, “The committal order against both Mr. Zhu and Mr. Davies empowers law enforcement to ensure their imprisonment for a duration of 4 months.”
While confined behind bars, the liquidators are poised to initiate efforts to salvage 3AC’s assets, including those acquired through the firm’s funds. Prior to these developments, Singapore’s regulatory authorities handed down a nine-year ban on 3AC’s founders, effectively barring them from participating in regulated business activities. Furthermore, the Monetary Authority of Singapore (MAS) leveled accusations against Davies and Zhu for breaching the Securities Act.
This sudden arrest and ensuing prison sentence stand as a pivotal moment in the saga of Three Arrows Capital, etching a remarkable chapter in the tumultuous history of the cryptocurrency market within Singapore.
Disclaimer: This article is provided solely for informational purposes and does not constitute legal advice or an endorsement of any actions taken by individuals or organisations mentioned herein. The information presented is accurate as of the date of publication, and subsequent developments may not be reflected in this article.
