Three Arrows Capital (3AC) co-founder Su Zhu will serve a four-month jail sentence after being arrested in Singapore for not complying with court orders relating to the firm’s bankruptcy case. Zhu attempted to leave the country via Changi Airport on Friday afternoon but was swiftly apprehended by officials.
Three Arrows Capital (3AC) co-founder Su Zhu was arrested in Singapore
The 36-year-old’s flee attempt followed repeated failures to assist with an investigation into how the crypto hedge fund, which once managed $10bn in assets, spectacularly collapsed last year. Financial advisory firm Teneo obtained a “commital order” to arrest Zhu so he could assist with the ongoing liquidation procedure. A second co-founder, Kyle Davies, has not yet been arrested and faces similar charges. Teneo wants both men to cooperate in the recovery of assets linked to 3AC’s once-burgeoning fund.
The firm was a significant crypto player only 18 months ago. However, a stark decline in cryptocurrency prices and an eye-raising trading strategy forced it to file for bankruptcy in July 2022. Teneo says it is now focused on helping its creditors maximise their returns in a case that sent shockwaves across the industry.
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The Singaporean central bank banned Zhu and Davies from being involved in a capital market services firm for nine years. That followed attempts by the pair to drum up interest in a new venture, which ironically aimed to leverage bankruptcies in the financial industry via a debt marketplace. Those aspirations are now over as Zhu is in custody, and the police seek to bring Davies “safely” in who faces a similar committal court order.
