Su Zhu’s Expected Release After Questioning in Singapore
Su Zhu, the co-founder of Three Arrows Capital, is set to be released this month after a court hearing in Singapore where he faced questioning for the first time. During the hearing, Zhu had to provide insights into how the fund failed and the location of its assets.
3AC Co-Founder Questioned in Singapore
Zhu’s questioning was approved by the court after he was arrested at the Singapore airport and jailed for four months for failing to cooperate with the task of winding up Three Arrows. The liquidators sought crucial information about the fund’s failure and asset whereabouts. The proceedings are considered a civil matter, and neither Zhu nor Kyle Davies has faced criminal charges.
Zhu Claims Resistance from Liquidators
Zhu previously claimed that liquidators resisted their efforts to cooperate. In email correspondence submitted to a New York bankruptcy court, counsel to both co-founders dismissed the court orders obtained by liquidators as “baseless.”
Three Arrows Capital Crypto Fund Collapse
Three Arrows Capital experienced a collapse in 2022 due to leveraged bets going awry, contributing to a $2 trillion crypto market downturn. Liquidators are seeking to recover $1.3 billion from Zhu and Davies, with creditors owed around $3.3 billion. Singapore’s central bank imposed nine-year prohibition orders on Zhu and Davies for risk management failures and providing false information.
Hot Take: Repercussions for Three Arrows Capital Founders
The collapse of Three Arrows Capital has led to legal proceedings and questioning for co-founder Su Zhu. While Zhu is expected to be released this month, his cooperation with liquidators is crucial in recovering funds for creditors. The reputation of Zhu and his co-founder Kyle Davies has suffered as risky practices were exposed. With billions of dollars at stake, the fallout from the collapse of Three Arrows Capital highlights the need for proper risk management and transparency in the crypto industry.
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