Co-Founder Su Zhu Faces Questioning in Singapore Court
In a recent court hearing in Singapore, Su Zhu, the co-founder of Three Arrows Capital, was questioned by lawyers from Teneo, the appointed liquidator. The purpose of the questioning was to gather information about the collapse of the crypto fund and the current location of its assets. Zhu’s questioning was approved after his arrest and four-month detention for non-cooperation with the winding-up process. He is expected to be released this month.
Three Arrows Capital’s Downfall
Three Arrows Capital experienced a significant downfall in 2022, contributing to a $2 trillion crypto market downturn. Liquidators allege that Zhu and Kyle Davies failed to cooperate adequately with the investigation and are seeking to recover $1.3 billion from them. The total owed to creditors is estimated to be around $3.3 billion.
Resistance and Regulatory Action
Zhu asserted that they encountered resistance in their efforts to cooperate with liquidators. Correspondence submitted by the liquidators suggests that they regard the court orders they obtained as “baseless.” Three Arrows Capital shifted its registration to the British Virgin Islands after operating from Singapore. Zhu and Davies also faced regulatory action from Singapore’s central bank in September.
Hot Take: Three Arrows Capital Faces Legal Challenges
The collapse of Three Arrows Capital has led to legal challenges for its co-founder Su Zhu. With billions of dollars at stake, liquidators are working tirelessly to recover funds for creditors. The ongoing court proceedings in Singapore shed light on the failure of the crypto fund and the alleged lack of cooperation from Zhu and Davies. As the investigation continues, it remains to be seen how this case will unfold and what impact it will have on the crypto industry.
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