Su Zhu, Co-founder of Collapsed Crypto Hedge Fund Arrested at Changi Airport
Last week, Su Zhu, co-founder of the crypto hedge fund Three Arrows Capital, was arrested at Changi Airport in Singapore while attempting to leave the country. The liquidator of the fund, Teneo, stated that Zhu had failed to cooperate with their investigation into the liquidation of the firm. Despite a previous court order in Singapore requiring his cooperation, Zhu now faces four months in prison. The arrest was confirmed by Singapore police on September 29 without revealing the identity of the individual.
Photographs obtained by The Block show the moment Zhu was apprehended by two policemen at the airport.
Davies’ Whereabouts Unknown
Three Arrows was once a prominent crypto hedge fund, managing around $10 billion in assets and investing in various crypto assets. However, it filed for bankruptcy in July 2022 following the collapse of the Terra ecosystem. Teneo, acting as the liquidator, has faced challenges in obtaining cooperation from both Su Zhu and his co-founder Kyle Davies. Teneo previously attempted to subpoena them via a post on X (formerly Twitter). Reports suggest that Teneo aims to recover $1.3 billion from Davies and Zhu due to alleged losses incurred before Three Arrows’ collapse. While Zhu has been arrested, Davies’ whereabouts remain unknown.
Hot Take: Arrest of Su Zhu Raises Questions About Accountability in Crypto Industry
The recent arrest of Su Zhu highlights the pressing issue of accountability within the crypto industry. The collapse of Three Arrows Capital and subsequent investigation have shed light on potential mismanagement and financial irregularities. As investors increasingly pour money into crypto funds, it is crucial that regulators establish robust mechanisms to ensure transparency and protect investor interests. The arrest of Zhu, along with the unresolved whereabouts of his co-founder Kyle Davies, raises concerns about the effectiveness of current regulatory frameworks. Moving forward, it is imperative for the crypto industry to prioritize accountability and take steps to prevent similar incidents in the future.
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