Su Zhu, co-founder of the bankrupt crypto hedge fund Three Arrows Capital (3AC), was arrested by authorities at Changi Airport in Singapore on Friday, September 29, when he was about to leave the country.
For context, Three Arrows Capital is a key entity in the world of crypto markets, having managed approximately $10 billion in crypto assets. In July 2022, 3AC filed for bankruptcy under Chapter 15 in New York.
Teneo, the company responsible for the liquidation process of 3AC's assets, announced that it had received a commitment order against Zhu after he did not comply with a court order to cooperate with the liquidation process.
The order ordered Singapore police to arrest and detain Zhu in prison for four months. Teneo also claims to have obtained a “similar” commitment order for another 3AC co-founder, namely Kyle Davies. However, until now, they are still having difficulty tracking Kyle Davies' whereabouts.
During his detention, the liquidator will hold discussions with Zhu regarding all aspects related to 3AC, with a focus on the return of assets belonging to 3AC or obtained through the company's funds. Teneo emphasized that the liquidator will take advantage of every available opportunity to ensure Zhu fully complies with the court order.
"Throughout the process, the liquidators' priority was to recover 3AC's assets and maximize profits for its creditors," the liquidators said.
In July last year, when the crypto market started to experience a downturn, 3AC filed for bankruptcy. After the collapse, Zhu and Davies could not be found by Teneo. At the time, representatives of the two founders claimed they were staying away from the liquidators out of fear of "threats of physical violence."
Additionally, Singapore's central bank recently issued a ban on Zhu and Davies, barring them from managing, controlling or owning shares in "any capital markets services company" for the next nine years.
