Former co-founder of collapsed Three Arrows hedge fund arrested

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Former co-founder of collapsed Three Arrows hedge fund arrested

The former co-founder of collapsed cryptocurrency hedge fund Three Arrows Capital has been apprehended in Singapore and jailed for four months, according to the company's liquidator.

The Singapore-based firm filed for bankruptcy last year because its fortunes suffered a steep decline after a massive sell-off of assets it had been betting on as prices nosedived in crypto markets.

Su Zhu was detained at Changi Airport, while trying to leave the country, Three Arrows liquidator Teneo said late Friday.

He was arrested after Teneo said it had obtained a committal order against Zhu last week for failing to comply with its investigation into the company's failure.

Teneo said prison would be a long-term punishment for incarcerated individuals.

He was also sentenced to four months in prison but his whereabouts remain unknown at this point in time.

Teneo has said the pair has been banned from conducting regulated investment activity for nine years.

The liquidator, ordered to preside over the bankruptcy by a court in the British Virgin Islands, is seeking to recover the assets of Three Arrows and bring back returns to its creditors following the company's failure.

The report has accused Zhu and Davies of failing to participate in the effort to return money and not voluntarily provide information.

The pair said they had been travelling since the hedge fund's collapse, including to the Indonesian resort island of Bali, where they had been surfing and meditating.

CNA has contacted the Singapore Police Force and Immigrations and Checkpoints Authority for comment.