Three Arrows Capital co-founder Zhu apprehended in Singapore

afr.com:

Three Arrows Capital co-founder Su Zhu was apprehended in Singapore while trying to leave the country on Friday.

Teneo, which is liquidating the defunct firm’s estate, said it received a committal order against Zhu after he failed to comply with an earlier Singapore court order compelling him to cooperate with the liquidation investigation. The order sentenced Zhu to four months in prison, according to a statement by Teneo.

Three Arrows Capital, once considered among the largest and most successful crypto-native hedge funds, suffered big losses last year on ill-fated Luna tokens and other investments. Bloomberg

Zhu was apprehended at Singapore’s Changi Airport on Friday afternoon, Teneo said, adding that the September 25 order also saw Zhu’s co-founder Kyle Davies receive the same sentence.

Zhu didn’t immediately respond to a request for comment. Davies couldn’t be immediately reached for comment, and his lawyers didn’t immediately respond to a request for comment. Bloomberg has reached out to Singapore police for comment.

Three Arrows Capital, once considered among the largest and most successful crypto-native hedge funds, suffered big losses last year on ill-fated Luna tokens and other investments, leaving its creditors owed around $US3 billion. Liquidators are seeking to recover more than $US1 billion directly from the co-founders.

Teneo said they will seek to engage with Zhu on matters relating to Three Arrows and recovering lost funds while he is in prison. Both Zhu and Davies were banned from conducting any regulated activity in Singapore by the country’s financial watchdog earlier this month.

Zhu’s arrest is only the latest in a string of legal interventions against alleged wrongdoing in the crypto sector,