3AC cofounder Su Zhu arrested at Singapore airport

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3AC cofounder Su Zhu arrested at Singapore airport

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

The liquidators ordered that he be arrested in accordance with a committal order. The liquidators said that Zhu allegedly refused to comply with a court order that compelled him to cooperate with their investigation and account for his activities at 3AC.

The liquidators said they will try to work together with Zhu to help recover 3AC assets still owed to creditors.

Another similar court order has been granted in Singapore for the arrest of Jiang Zhu's 3AC cofounder, Kyle Davies.

The fund filed for Chapter 15 bankruptcy in June 2022, following the collapse of the stablecoin and sister cryptocurrency Luna, which the firm had invested in and supported.

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

The Monetary Authority of Singapore has banned Zhu and Davies from participating in the regulated financial industry for nine years. That ban includes serving as director, majority shareholder, or in the management of any capital market services firm, according to Coindesk. The pair had previously been working on a new venture, OPNX, a crypto exchange aimed at enabling customers to trade bankruptcy claims.

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