Su Zhu, Co-founder of Three Arrows Capital, to be Released Following Arrest
Su Zhu, co-founder of the now-defunct crypto hedge fund Three Arrows Capital (3AC), is set to be released this month after his arrest in September. He was arrested for not cooperating with liquidation efforts. Zhu also faces two days of questioning in a Singapore court this week.
Questioning in Singapore Court
Zhu will be questioned in a Singapore court as part of the liquidation process. Lawyers for liquidator Teneo are seeking information on the cause of 3AC’s failure and the location of assets, which will be shared with creditors to aid in their recovery efforts.
No Criminal Charges
The proceedings against Zhu are civil in nature, and he has not faced any criminal charges in Singapore. Zhu’s legal representatives, the court, and Teneo did not provide any comments on the matter.
Su Zhu’s Arrest at Changi Airport
Zhu was apprehended at Changi Airport in Singapore while attempting to leave the country. He was sentenced to four months in prison but is expected to be released this month due to good behavior.
Teneo confirmed that it received a committal order against Zhu for his failure to comply with a court order related to the liquidation investigation. A similar order was issued against co-founder Kyle Davies, who has not yet been apprehended.
Three Arrows Capital’s Collapse
Following the collapse of the Terra ecosystem last year, 3AC encountered difficulties and filed for bankruptcy in July 2022. The fund owes over $3.5 billion to its top creditors. The Monetary Authority of Singapore prohibited Zhu and Davies from participating in regulated business activities in the country.
Teneo is also attempting to recover $1.3 billion directly from Zhu and Davies, alleging that they took on significant leverage after the fund became insolvent. The co-founders collaborated with Mark Lamb to launch a new exchange business called OPNX, which aims to enable users to trade bankruptcy claims.
Hot Take: Su Zhu’s Release Raises Questions About 3AC’s Collapse
The upcoming release of Su Zhu, co-founder of Three Arrows Capital, following his arrest and questioning in Singapore, raises questions about the collapse of the crypto hedge fund. With creditors owed $3.5 billion, the liquidation process seeks to gather information on the fund’s failure and locate its assets. Zhu’s release this month will surely attract attention and speculation about the future of 3AC and its co-founders.
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