3 Arrows co-founder Su Zhu sentenced to prison

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3 Arrows co-founder Su Zhu sentenced to prison

Three Arrows Capital co-founder Zhu, who is being held in Singapore airport, was sentenced to four months in prison. The hedge fund's other co-founder, Kyle Davies, is also being called for arrest and imprisonment.

The liquidators behind Three Arrows Capital, the now-defunct crypto hedge fund, said that its co-founder Su Zhu was arrested at the Changi Airport in Singapore, while trying to leave the country.

Teneo, a financial advisory firm for the defunct crypto hedge fund, said it received a 'committal order' against Zhu after he failed to comply with court orders to cooperate with the liquidation investigation. The sentencing decision sent Zhu to four months in prison.

The advice firm said that the other 3AC co-founder, Kyle Davies, was also ordered to serve four months in prison. Teneo said Davies' whereabouts are unknown.

The firm had an assets of an estimated $10 billion and was a major player in the crypto market. In July 2022, 3AC filed a Chapter 15 bankruptcy case in New York.

The prior insolvency of the hedge fund led to major crypto players reorganizing their operations and limiting customer withdrawals despite a crypto sell-off that appeared to catch plenty of big firms off guard at the time.

Teneo did not immediately respond to a TechCrunch request for comment.