Three Arrows Capital Co-founder Su Zhu Arrested at Singapore Airport
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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.
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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