Su Zhu, a co-founder of Three Arrows Capital, found himself under arrest at a Singaporean airport while attempting to depart the country.
Bloomberg reports that this arrest stems from Su Zhu’s refusal to comply with a court order mandating cooperation in an investigation related to the collapse of his cryptocurrency hedge fund. Consequently, he has been sentenced to four months in prison.
Non-Compliance with Court Order
The cryptocurrency hedge fund’s liquidator, Teneo, issued a statement explaining the situation. They revealed that the joint liquidators had sought and obtained a committal order against Su Zhu on September 25, 2023, due to his deliberate failure to adhere to a court order.
This court order essentially required him to cooperate fully with the liquidators’ investigations and to provide an account of his activities as one of the founders of Three Arrows Capital (3AC) and its former investment manager.
Co-founder of Three Arrows Kyle Davies Remains Untraceable
In a parallel development, Kyle Davies, another co-founder of Three Arrows Capital received a similar sentence but has thus far eluded capture as he remains untraceable. Both Su Zhu and Kyle Davies faced regulatory consequences in Singapore, with the country’s financial regulator banning them from engaging in regulated business activities.
At one point, Three Arrows Capital stood as the largest crypto hedge fund in the industry. However, the fund encountered significant challenges following the crash of the Terra ecosystem. These challenges culminated in Three Arrows Capital filing for bankruptcy in July of the same year, carrying a staggering debt load exceeding $3.5 billion owed to top creditors.