3 Arrows cofounder arrested at Singapore airport

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3 Arrows cofounder arrested at Singapore airport

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

He was arrested, according to a committal order granted to the liquidators. In a statement to the liquidators, 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 expected 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.

The court in Singapore issued a similar order in response to the arrest of Zhu's cofounder, Kyle Davies.

In June 2022, Terraform Labs filed for Chapter 15 bankruptcy, which was triggered by the collapse of the TerraUSD stablecoin and sister cryptocurrency Luna, which the firm had invested in and supported.

Teneo's liquidators at the consulting and advisory firm Teneo have sought to recover $3.3 billion for the company's creditors since the bankruptcy was announced last year. The liquidators are seeking $1.3 billion from Zhu and Davies, Bloomberg reported, because of debts that the cofounders racked up for the company in the months leading up to the bankruptcy.

Earlier this month, Singapore's financial authority, the Monetary Authority of Singapore, banned Zhu and Davies from participating in the country's regulated financial industry for nine years. Coindesk said the ban includes serving as director, majority shareholder, or in the management of any capital market services firm. The pair had been working on a new venture, OPNX, a cryptocurrency exchange that aims to let customers trade bankruptcy claims.

After their hedge fund collapsed, Zhu and Davies have demonstrated little remorse for their actions and, at least for a time, were enjoying the slow life in Bali.