The co-founder of the now-defunct crypto hedge fund Three Arrows Capital, Zhu Su, has been apprehended in an escape attempt from Singapore. This arrest comes amid concerns surrounding his former hedge fund and the recent launch of his crypto exchange, OPNX.
Zhu Su Is Sent To Prison For 4 Months
Zhu Su, co-founder of Three Arrows Capital (3AC), was arrested at Changi Airport as he tried to leave Singapore. The Singapore Courts have sentenced him to a four-month prison term. This is a result of his intentional non-compliance with a previous court directive that required him to collaborate with liquidation investigations and provide a detailed account of his roles and activities at 3AC.
Kyle Davies, the other co-founder of 3AC, also faces a committal order carrying a four-month imprisonment term. However, his current location remains unknown.
Teneo said, “Throughout the process, the liquidators’ priority has been recovering the assets of 3AC and maximizing returns for its creditors.”
During Zhu’s incarceration, Teneo plans to work with him regarding 3AC and the retrieval of its assets. Depending on the situation, Teneo may seek additional court orders.
Singapore’s Legal Move Against Three Arrows Capital
Singapore has imposed a nine-year prohibition on Zhu Su and Kyle Davies, preventing them from engaging in regulated capital market activities. They are prohibited from holding directorial roles or becoming significant stakeholders in capital market firms in Singapore. Their involvement in fund management, asset custodial services, and product financing is also restricted.
The Monetary Authority of Singapore expressed its concern over Zhu and Davies’ disregard for regulations. The authority is dedicated to taking strict actions against senior executives involved in such wrongdoing.
3AC, based in Singapore, suffered during the crypto market downturn. The firm invested in various crypto ventures, including Terra Classic USD, which experienced a sharp decline in 2022. As a result, 3AC faced financial challenges and went into liquidation.
Hot Take: Zhu Su’s Arrest Raises Questions About Crypto Hedge Funds
The arrest of Zhu Su, co-founder of Three Arrows Capital, highlights the potential risks associated with crypto hedge funds. This incident raises concerns about compliance with regulations and the protection of investors’ assets. It serves as a reminder that thorough due diligence is necessary when investing in such funds.
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