3AC cofounder Su Zhu arrested at Singapore airport

3AC cofounder Su Zhu arrested at Singapore airport

The cofounder of the bankrupt crypto hedge fund Three Arrows Capital, Su Zhu, was apprehended Friday by authorities at Singapore Changi Airport as he tried to flee the country, according to the company's joint liquidators.

He is being arrested in accordance with a committal order granted to the liquidators. The liquidators said Zhu allegedly refused to comply with a court order that compelled him to cooperate with their investigation and account for his activities at 3AC.

Zhu is set to be imprisoned for four months and during that time, the liquidators said they will try to work with him to recover 3AC assets still owed to creditors.

A similar court order has also been granted in Singapore to arrest the co-founder of 3AC, Kyle Davies.

The $14 billion hedge fund filed for Chapter 15 bankruptcy in June 2022 following the collapse of TerraUSD's stablecoin and sister cryptocurrency Luna, which the firm had invested in and supported.

Teneo's liquidators at the consultancy and advisory firm Teneo have been trying to recover $3.3 billion for the company's creditors since the company's bankruptcy was announced last year. The liquidators are currently seeking $1.3 billion from Zhu and Davies, Bloomberg reported, based on debts that the cofounders allegedly racked up for the company in the months leading up to the bankruptcy.

The Monetary Authority of Singapore had banned Zhu and Davies from participating in Singapore's regulated financial industry for nine years. It includes serving as director, majority shareholder, or in the management of any capital market services firm, according to Coindesk. The pair had been working on a new venture, known as OPNX, a crypto exchange that aims to allow customers to trade bankruptcy claims.

Since their hedge fund collapsed, Zhu and Davies have shown little remorse for their actions and were enjoying the slow life in Bali at least for a time, according to a June profile by the New York Times.