3AC’s Su Zhu arrested in Singapore
The co-founder of Three Arrows Capital (3AC), Su Zhu, was arrested in Singapore when attempting to leave the country, Cointelegraph has learned from Teneo, the joint liquidator of the bankrupt hedge fund.
In a statement, Teneo announced that Zhu “was apprehended at Changi Airport whilst attempting to travel out of Singapore following a committal order granted by the Singapore Courts against him.“
A committal order is used to send someone to prison for contempt of court. On Sept. 25, Teneo was granted its committal request in Singapore, claiming Zhu failed “to comply with a court order.“
The investigation is related to efforts to recover funds for creditors of 3AC. The $10 billion hedge fund collapsed in 2022 following the implosion of the Terra ecosystem. 3AC had excessive leverage on long positions across some cryptocurrencies and borrowed hundreds of millions of dollars from crypto lending protocol.
Since its failure, co-founders Zhu and Kyle Davies have been on the run from liquidators, although very active on social media. The committal order granted in Singapore sentenced Zhu to four months’ imprisonment. A similar committal order was granted against Davies, said Teneo.
Davies’ whereabouts remain unknown. The Monetary Authority of Singapore prohibited Zhu and Davies from conducting regulated investment activity for nine years each.
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