Founder of Failed Crypto Hedge Fund Arrested in Singapore
Su Zhu, the founder of Three Arrows Capital (3AC) and co-founder of the OPNX exchange, has been apprehended by authorities in Singapore. He is expected to serve a four-month prison sentence. Teneo, the liquidator for 3AC, broke the news and stated that Zhu was arrested at Singapore Changi airport as he tried to leave the country. The arrest was made possible through a committal order granted by the Singapore courts. Kyle Davies, co-founder of 3AC, also received a similar order but his whereabouts are unknown.
Zhu’s Arrest Delights Crypto Community
Many individuals in the crypto space view Zhu and Davies as major fraudsters. Consequently, there was considerable joy within the crypto community when news of Zhu’s arrest surfaced. On social media, users mocked Zhu’s latest Instagram story featuring a beach, suggesting he could put it on his jail cell wall.
Teneo’s Plan for Asset Recovery
During Zhu’s imprisonment, Teneo intends to interrogate him regarding the assets of 3AC in order to aid in their recovery. The liquidators have repeatedly complained about Zhu and Davies’ lack of cooperation during the liquidation process. Both founders have ignored legal notices while remaining active on social media platforms.
Market Ban Imposed on Zhu and Davies
Singapore has issued a multi-year market activity ban against Zhu and Davies, effective since September 13th. This means they are prohibited from engaging in any regulated financial activity in Singapore and its associated jurisdictions. The Monetary Authority of Singapore (MAS) has cited contraventions of securities regulations committed by Zhu and Davies between August 2020 and January 2022. MAS intends to take action against senior managers who engage in such misconduct.
Hot Take: Fraudulent Founder Apprehended, Crypto Community Celebrates
The arrest of Su Zhu, founder of Three Arrows Capital and co-founder of OPNX exchange, in Singapore has brought joy to the crypto community. Zhu, considered one of the biggest fraudsters in the industry, now faces a four-month prison sentence. The liquidators for 3AC plan to interrogate Zhu during his imprisonment to aid in asset recovery. Additionally, Singapore has imposed a market ban on Zhu and his co-founder Kyle Davies, preventing them from engaging in regulated financial activities. This arrest serves as a reminder that fraudulent actions will not go unpunished in the crypto space.
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