A co-founder of Three Arrows Capital, Su Zhu, was arrested at an airport in Singapore when he tried to leave the country, according to Bloomberg.
This is happening because Su Zhu didn’t comply with a court order to cooperate with an investigation into the collapse of his cryptocurrency hedge fund 3AC, resulting in a court order sentencing him to four months in prison.
The hedge fund’s liquidator, Teneo, said in a statement, “The joint liquidators had applied for and obtained the committal order against Mr Zhu on 25 September 2023 as a consequence of his deliberate failure to comply with a court order obtained which, in essence, compelled him to cooperate with the liquidators investigations and account for his activities as one of the founders of 3AC and its former investment manager.”
In a similar vein, another co-founder, Kyle Davies was also given a similar sentence but has not been caught because he remains untraceable. Both Su Zhu and Kyle Davies were banned from regulated business in Singapore by the country’s financial regulator.
Also Read: Singapore Central Bank Bans 3AC Founders For 9 Years
The largest crypto hedge fund at one point, Three Arrows Capital, which experienced issues after the crash of the Terra ecosystem, filed for bankruptcy in July this year with over $3.5 billion in debt to top creditors.
