Key Takeaways:
- Su Zhu of Three Arrows Capital was apprehended in Singapore while leaving.
- Four-month prison term for non-cooperation in bankruptcy investigation.
- Co-founder Kyle Davies’ whereabouts are unknown, liquidator says.
LUCKNOW (CoinChapter.com) — Su Zhu, a co-founder of the now-bankrupt crypto hedge fund Three Arrows Capital, got arrested at Changi Airport in Singapore, according to a statement by the company’s liquidators, Teneo.
The liquidator disclosed that Su Zhu is set to serve a four-month prison sentence following the arrest order.
An arrest order The arrest order also extends to his co-founder, Kyle Davies. However, as of now, Davies’ whereabouts remain unknown, as stated by Teneo.
In September, the Monetary Authority of Singapore imposed a nine-year ban on Zhu and Davies, prohibiting them from owning or managing any registered capital markets firm.
Additionally, Dubai’s crypto regulatory authorities reprimanded both in May for operating their recent venture, a bankruptcy exchange named OPNX, without proper regulation. Furthermore, Davies has chosen not to comply with subpoenas issued by a New York Court regarding the collapse of 3AC.
Fall of Three Arrows Capital
Three Arrows Capital made headlines in 2022 as one of the first high-profile cryptocurrency firms to collapse. It faced substantial losses due to unfortunate investments in Luna tokens and other assets.
These losses have left the fund’s creditors with approximately $3 billion in outstanding debts. Liquidators are actively pursuing the recovery of over $1 billion directly from the fund’s co-founders. The firm filed for bankruptcy after experiencing significant losses in the volatile cryptocurrency markets.
The native token of their latest venture experienced a 21% decline in value, causing its market capitalization to dwindle to $40 million.
