The liquidator of Three Arrows Capital (3AC), Teneo, has said that the founder of the failed crypto hedge fund, Su Zhu, has been apprehended by the authorities in Singapore. 

Zhu, also the co-founder of the OPNX exchange, is expected to serve a four-month prison sentence. 

3AC Co-Founder Apprehended In Singapore 

One of the most controversial figures in the crypto space, Su Zhu, has been arrested at Singapore Changi airport as he attempted to leave the country. The news was broken by Teneo, the liquidators for Three Arrows Capital (3AC). Zhu now faces a four-month prison sentence. The arrest was made possible under a committal order granted by the Singapore courts, according to an update shared by Teneo. A similar committal order with an imprisonment term of four months has also been granted against Three Arrows Capital’s Kyle Davies. However, Davies’ whereabouts remain unknown at this point in time. 

Teneo obtained the order on the 25th of September after Zhu refused to comply with a court order requiring him to cooperate with the liquidators. Zhu was ordered to account for his activities and actions as the co-founder of 3AC and its former investment manager. Many in the crypto space consider Zhu and his partner Kyle Davies to be one of the biggest fraudsters in crypto. This is why, unsurprisingly, there was considerable joy in the crypto community when the news of his arrest broke. 

On-chain investigator ZachXBT shared a screenshot from Zhy’s latest Instagram story, that of a beach. Community members were quick to mock Zhu and his post, with one user stating he could print it out and put it on his jail cell wall. 

Teneo To Interrogate Zhu For Asset Recovery 

During Zhu’s imprisonment, Teneo will look to interrogate him regarding Three Arrows Capital’s assets. 

“Throughout the process, the liquidators’ priority has been recovering the assets of 3AC and maximizing returns for its creditors.”

Liquidators have complained on numerous occasions that Zhu and Davies have been uncooperative during the liquidation procedure. Davies and Zhu also received subpoenas on X, considering authorities could not get hold of them. However, both founders persistently ignored and disregarded all legal notices while remaining active on all social media platforms. 

Even with liquidators and authorities chasing them, Zhu and Davies announced the launch of OPNX, a new crypto exchange in partnership with the founders of CoinFLEX. 

Singapore Issues Market Ban On Zhu And Davies 

Singapore recently announced that it had issued a multi-year market activity ban against Zhu and Davies. The ban came into effect on the 13th of September. This means neither individual will be allowed to perform any regulated financial activity in Singapore and its associated jurisdictions. 

“The Monetary Authority of Singapore (MAS) has issued nine-year prohibition orders (POs) against Mr Zhu Su and Mr Kyle Livingston Davies for contraventions of the Securities and Futures Act 2001 (SFA) and Securities and Futures (Licensing and Conduct of Business) Regulations (SFR). Mr Zhu was the Chief Executive Officer and Director of Three Arrows Capital Pte Ltd (TACPL), while Mr Davies was the Chairman and Director.”

According to the Monetary Authority of Singapore, Zhu and Davies misled the market regulator and committed a number of violations between August 2020 and January 2022. In a statement, the assistant managing director of payments and financial crime at the Monetary Authority of Singapore, Loo Siew Yee, commented, 

“MAS takes a serious view of Mr. Zhu’s and Mr. Davies’ flagrant disregard of MAS’ regulatory requirements and dereliction of their directors’ duties. MAS will take action to weed out senior managers who commit such misconduct.”

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.