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Su Zhu, co-founder of 3AC, arrested in Singapore.

Singaporean authorities arrested Su Zhu, the co-founder of Three Arrows Capital (3AC), when he tried to leave the country.

Teneo, the joint liquidator overseeing the management of the bankrupt hedge fund, has confirmed that authorities detained Zhu at Changi Airport after a Singapore court issued a committal order.

Zhu’s arrest was a result of his non-compliance with a court order.

The ongoing investigation is focused on recovering funds for the creditors of 3AC.

In 2022, the hedge fund, with assets worth $10 billion, collapsed after the Terra ecosystem’s downfall.

3AC had high leverage on long positions in various cryptocurrencies and had borrowed significant amounts from a crypto lending protocol.

Following the fund’s collapse, co-founders Zhu and Kyle Davies have been evading liquidators, although they have remained active on social media.

As a consequence of the committal order issued in Singapore, the court has sentenced Zhu to four months’ imprisonment.

Teneo has also verified that they have granted a similar order against Davies.

“As a result, Mr Zhu will be held in prison to serve his sentence of 4 months under the committal order, during which time the liquidators will seek to engage with him on matters relating to 3AC, focusing on the recovery of assets that are either the property of 3AC or that have been acquired using 3AC’s funds. The liquidators will pursue all opportunities to ensure Mr Zhu complies in full with the court order made against him for provision of information and documents relating to 3AC and its former investment manager during the course of his imprisonment and thereafter, and may make applications for further court orders as required.“

The current location of Kyle Davies remains undisclosed.

Additionally, the Monetary Authority of Singapore (MAS) has imposed a nine-year ban on Su Zhu and Kyle Davies, prohibiting them from engaging in regulated investment activities.

Three Arrows Capital (3AC) is a prominent hedge fund and investment firm that focuses on digital assets and cryptocurrencies.

3AC, founded in 2012, has gained recognition for its expertise in actively trading and investing in a wide range of crypto assets, such as Bitcoin, Ethereum, and other digital currencies.

The firm is headquartered in Singapore and has gained recognition for its active involvement in the cryptocurrency space.

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