Su Zhu, Co-Founder of Three Arrows Capital, to Be Released After Interrogation
Su Zhu, co-founder of bankrupt cryptocurrency lender Three Arrows Capital (3AC), is set to be released soon after facing extensive interrogation in a Singapore court. Zhu was arrested in September 2023 when he attempted to flee the country after being sentenced to four months of imprisonment. Teneo, 3AC’s joint liquidator, stated that Zhu planned to assist with matters related to the firm and asset recovery.
Interrogation and Release
Zhu recently faced his first interrogation in Singapore, responding to Teneo lawyers over two days. Lawyers sought information on the fund’s failure and the location of assets. According to sources, Zhu is expected to be released this month based on good behavior provisions.
Background on Three Arrows Capital
Founded in 2012 by Kyle Davies and Su Zhu, 3AC is a Singaporean crypto hedge fund. The firm failed to meet margin calls during a crypto market sell-off in 2022. It reportedly borrowed Bitcoin from another collapsed crypto lending firm but couldn’t meet a margin call as market conditions worsened.
Civil Matter with No Criminal Charges
The proceedings between Zhu and Teneo are a civil matter, with no criminal charges filed against him or Davies in Singapore. Both received four-month imprisonment sentences in September 2023 due to alleged violations of the country’s securities laws at 3AC.
Hot Take: Su Zhu’s Impending Release Highlights Ongoing Troubles for Three Arrows Capital
The pending release of Su Zhu following his interrogation brings attention back to the ongoing troubles faced by Three Arrows Capital. The bankruptcy of the cryptocurrency lender, its failure to meet margin calls, and the search for assets have raised questions about the management and financial stability of the firm. As Zhu prepares to be released, it remains to be seen what steps will be taken to address these issues and whether Three Arrows Capital can recover from its current situation.
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