3 Arrows Capital co-founder Su Zhu arrested in Singapore

3 Arrows Capital co-founder Su Zhu arrested in Singapore

Su Zhu, the co-founder of collapsed Singapore-based crypto hedge fund Three Arrows Capital, was apprehended in Singapore today, its liquidator Teneo said.

Teneo notes that on September 25, Singapore Courts issued a committal order against Zu, directing police to arrest him on sight.

He was taken into custody at Changi Airport, where he was trying to leave the country.

In June 2022, three Arrows Capital filed for bankruptcy, shortly after the collapse of the Terra ecosystem. It launched in 2012 and at one point managed to raise as much as $10 billion - just months before it failed.

The Singapore Courts can issue commitment orders to compensate non-compliance with court decisions or judgements. Teneo sought the order to force the 3AC founders to cooperate in the liquidation procedure.

Mr Zhu, who was sentenced to four months in prison, was sentenced to a reduced term of four months in prison.

Teneo said, During that period, he said, Teneo spent a considerable amount of time looking to improve the state of the economy.

A committal order has also been issued against 3AC co-founder Kyle Davies, who has not been apprehended.

The Monetary Authority of Singapore has also barred Zhu and Davies from conducting regulated investment activities in the country for nine years.

The founders, who met in college, have recently launched a new crypto trading platform, OPNX.

Mark Lamb founded Coinflex, which was originally known as Coinflex. In April, Davies and Zhu relaunched the service with the intent of allowing users to trade bankruptcy claims tied to failed exchanges, including FTX.

Mark Lamb, CEO of Coinflex, leads the exchange with his wife, Leslie.

OPNX said it counted firms like Susquehanna, MIAX, and Nascent as investors. All of them later denied having invested in the exchange.

Tom Carreras, a stock market correspondent at DL News, is a market expert. Adam Morgan McCarthy, the London-based Markets Correspondent at DL News, is the Editor-in-Chief of the DL News newsroom.