In a significant development for the cryptocurrency industry, Su Zhu, co-founder of the failed hedge fund Three Arrows Capital (3AC), was arrested at Changi Airport in Singapore while attempting to leave the country.
Zhu’s arrest led to a subsequent court order sentencing him to four months in prison, as confirmed by 3AC’s joint liquidator, Teneo.
Three Arrows Capital Co-Founder Apprehended
According to reports, While Zhu now serves his prison term, the liquidators will actively engage with him to address matters concerning Three Arrows Capital.
Their primary focus will be on recovering assets belonging to 3AC or acquired using the fund’s resources. The liquidators seek to maximize returns for the hedge fund’s creditors and will initiate further court proceedings as necessary.
The arrest and subsequent sentencing of Zhu follow the earlier granting of a committal order on September 25. This order was obtained due to Zhu’s intentional non-compliance with a court directive that required his cooperation with the liquidators’ investigations.
Specifically, Zhu was obligated to provide a detailed account of his activities as a co-founder of 3AC and its former investment manager.
A similar committal order was also issued against Kyle Davies, the other co-founder of Three Arrows Capital. However, Davies’ current whereabouts remain unknown, according to Teneo.
The liquidators have consistently prioritized the recovery of 3AC’s assets and maximized returns for its creditors throughout the process. Their efforts focus on retrieving 3AC’s property and assets acquired using the fund’s funds.
Lastly, Teneo emphasized that they will continue to work diligently towards these objectives, potentially seeking additional court orders to facilitate the process.
Featured image from Shutterstock, chart from TradingView.com