In a recent turn of events, Su Zhu, the co-founder of Three Arrows Capital (3AC), has been arrested at Singapore’s Changi Airport. Zhu’s attempt to leave the country was thwarted when he was detained by authorities.
Key Takeaway
Su Zhu, co-founder of Three Arrows Capital, has been arrested at Singapore’s Changi Airport and sentenced to four months in prison. The other co-founder, Kyle Davies, is also facing a committal order, with his whereabouts currently unknown. 3AC’s insolvency had significant implications for the cryptocurrency industry, forcing major firms to reorganize and implement withdrawal restrictions.
Teneo, the financial advisory firm overseeing the liquidation process of 3AC, has revealed that Zhu was issued a “committal order” after failing to comply with court instructions regarding the liquidation investigation. As a result, Zhu has been sentenced to four months in prison.
The Fate of the Other Co-Founder
In addition to Zhu, Kyle Davies, the other co-founder of 3AC, is also facing a similar committal order. However, Davies’ current whereabouts remain unknown.
It is important to note that 3AC was once a significant player in the crypto market, managing approximately $10 billion in assets. However, the hedge fund’s insolvency led to a series of repercussions, including the need for major cryptocurrency firms to restructure their operations and impose limits on customer withdrawals. This unexpected development followed the downfall of the Terra/LUNA project.
Teneo, the advisory firm responsible for managing 3AC’s affairs, has yet to comment on the recent arrests.
