Co-Founder of Three Arrows Capital Faces Questioning in Singapore Court
In a significant development, Su Zhu, the co-founder of Three Arrows Capital (3AC), appeared in a Singapore court to answer questions about the collapse of the crypto fund. This court hearing provides an important opportunity for liquidators to gather crucial information as they work towards recovering the billions of dollars owed to creditors.
Details of the Court Hearing
The two-day court hearing required Zhu to respond to lawyers representing the liquidator, Teneo. They sought information about the fund’s failure and the location of its assets.
Release of Three Arrows Capital Co-Founder
Zhu’s arrest at the Singapore airport on September 29, 2023, led to this court hearing. According to a Bloomberg report, he had previously been jailed for four months for non-cooperation in winding up Three Arrows Capital. Zhu is expected to be released this month under standard good behavior provisions.
The court, Zhu’s legal representative, and the prison service have declined to comment on his release. Teneo, the liquidator, has also refrained from providing any comments.
Civil Matter with No Criminal Charges
This court proceeding is considered a civil matter, and no criminal charges have been brought against Zhu or his co-founder, Kyle Davies, in Singapore. The information obtained from this questioning will be shared with creditors to maximize potential recoveries.
Consequences of Three Arrows Capital’s Collapse
The collapse of Three Arrows Capital in 2022 had far-reaching consequences, contributing to a $2 trillion crypto market downturn and triggering other collapses within the sector.
Bans Imposed on Co-Founders Su Zhu and Kyle Davies
In mid-September, Singapore’s central bank imposed nine-year prohibition orders on Zhu and Davies. This action was taken due to risk management failings and the provision of false information related to their activities at Three Arrows.
Once considered one of the largest and most successful crypto hedge funds, Three Arrows Capital shifted its registration to the British Virgin Islands after operating from Singapore. Teneo was appointed by a British Virgin Islands court in June last year to liquidate the fund’s assets.
Liquidators are actively collaborating with authorities worldwide in their efforts to locate Davies, as his whereabouts remain unknown.
Hot Take: Liquidators Seek Answers in Singapore Court Hearing
The questioning of Su Zhu in a Singapore court offers a crucial opportunity for liquidators to gather valuable information regarding the collapse of Three Arrows Capital. As the legal proceedings unfold, the focus remains on recovering billions of dollars owed to creditors.
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