July 19, 2024
Three Arrows Capital co-founder Zhu arrested in Singapore airport, sentenced four months in prison

The hedge fund’s other co-founder Kyle Davies is also being called for arrest and imprisonment

The liquidators behind Three Arrows Capital (3AC), the now-defunct crypto hedge fund, shared that the firm’s co-founder Su Zhu was arrested in Singapore at the Changi Airport while trying to leave the country.

Teneo, a financial advisory firm controlling the liquidation and management of affairs for the defunct crypto hedge fund, said it got a “committal order” against Zhu after he failed to comply with court orders to cooperate with the liquidation investigation. The order sentenced Zhu to four months in prison, according to a statement.

The advisory firm added that a similar committal order was granted against the other 3AC co-founder, Kyle Davies, who is also being called for four month imprisonment. Davies’ whereabouts remain unknown, according to Teneo.

For context, the firm once managed an estimated $10 billion in assets and was a major entity among crypto market players. In July 2022, 3AC filed for Chapter 15 bankruptcy in New York.

The hedge fund’s prior insolvency forced major crypto players to rearrange their operations and limit customer withdrawals amid a crypto sell-off that seemed to catch plenty of mega firms off guard at the time, after the collapse of the Terra/LUNA project.

Teneo did not immediately reply to a request for comment from TechCrunch.

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