Su Zhu, the co-founder of Three Arrows Capital (3AC), a crypto hedge fund that collapsed in 2022 reportedly faced the probe in a Singapore court. The intense questioning comes in linked to the collapse of the crypto fund.
3AC co-founder grilled in Singapore court
According to the report, Liquidators from Teneo fetched some crucial information during the two-day hearing of Su Zhu. The authority looks to recover billions of dollars for creditors affected by the fund’s horrible collapse.
It added that the 3AC founder attended the court on Wednesday to address the impending questions. However, his legal representative did not respond to the media queries, and neither did the court.
It is important to note that, Singapore’s court approved the questioning session after Zhu’s arrest on September 29 from the airport. The co founder of the collapsed crypto fund 3AC was jailed for four months over non-cooperation with the liquidation process. Meanwhile, Zhu is expected to be released this month based on standard provisions for good behavior.
Su Zhu not cooperating with authorities?
The ongoing probe of Zhu led by Teneo is civil proceedings. The report mentioned that neither Kyle Davies nor Zhu faces criminal charges as of now in Singapore. It added that the details obtained after the probe will be shared directly with creditors in order to recover maximum loss.
Earlier, Zhu stated that his and Davies’ attempts to cooperate were met with resistance. In an email correspondence submitted to a New York bankruptcy court by the liquidators, counsel to Davies and Zhu have said that court orders the liquidators have obtained are “baseless.”
Three Arrows Capital (3AC) witnessed a horrible collapse in 2022 due to leveraged bets gone awry. This contributing to a $2 trillion crypto market downturn. However, Liquidators including Teneo had accused Zhu and Kyle Davies of non cooperation with the investigation. The authorities are seeking to recover $1.3 billion, with Teneo estimating the total owed to creditors at approximately $3.3 billion.
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