Teneo co-founder Zhu detained at Singapore airport
In a statement, Teneo announced that Zhu was apprehended at Changi Airport while attempting to travel out of Singapore following a committal order granted by the Singapore Courts against him. A committal order is used to send someone to prison for contempt of court. On Sept. 25, Teneo was granted its committal request in Singapore, claiming Zhu failed to comply with a court order.
Investigation related to fund recovery
The investigation is related to efforts to recover funds for creditors of 3AC. The $10 billion hedge fund collapsed in 2022 following the implosion of the Terra ecosystem. 3AC had excessive leverage on long positions across some cryptocurrencies and borrowed hundreds of millions of dollars from crypto lending protocol.
Zhu sentenced to four months’ imprisonment
Since its failure, co-founders Zhu and Kyle Davies have been on the run from liquidators, although very active on social media. The committal order granted in Singapore sentenced Zhu to four months’ imprisonment. A similar committal order was granted against Davies, said Teneo.
“As a result, Mr Zhu will be held in prison to serve his sentence of 4 months under the committal order, during which time the liquidators will seek to engage with him on matters relating to 3AC, focusing on the recovery of assets that are either the property of 3AC or that have been acquired using 3AC’s funds. The liquidators will pursue all opportunities to ensure Mr Zhu complies in full with the court order made against him for provision of information and documents relating to 3AC and its former investment manager during the course of his imprisonment and thereafter, and may make applications for further court orders as required.”
Davies’ whereabouts unknown
Davies’ whereabouts remain unknown. The Monetary Authority of Singapore prohibited Zhu and Davies from conducting regulated investment activity for nine years each.
Hot Take: Teneo co-founder Zhu detained at Singapore airport
Teneo co-founder Zhu has been apprehended at Changi Airport in Singapore while attempting to leave the country. This comes after a committal order was granted by the Singapore Courts against him due to his failure to comply with a court order. The investigation is focused on recovering funds for creditors of 3AC, a hedge fund that collapsed in 2022. Zhu has been sentenced to four months’ imprisonment under the committal order, during which time liquidators will engage with him to recover assets belonging to 3AC. Meanwhile, co-founder Kyle Davies remains at large. Both Zhu and Davies have been prohibited from conducting regulated investment activity by the Monetary Authority of Singapore.
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