Founder of bankrupt Three Arrows Capital arrested

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Founder of bankrupt Three Arrows Capital arrested

On Friday, Teneo said that Su Zhu, a founder of the bankrupt crypto hedge fund Three Arrows Capital, has been apprehended at Changi Airport in Singapore, the company's liquidators.

Teneo has said Zhu will spend four months in prison under an arrest order because he didn't comply with an order to cooperate with investigations into Three Arrows Capital, which filed for bankruptcy last year.

A similar order has been granted for Zhu's co-founder Kyle Davies, but his whereabouts remain unknown at this point in time, Teneo said.

Reuters was not immediately able to verify Zhu's arrest. In an email to a lawyer representing Zhu and Davies' firms, Mr. Zhu did not immediately respond to a request for comment. Police did not immediately respond to a request for comment.

Three Arrows Capital, one of the first significant cryptocurrency firms to collapse in 2022, filed for bankruptcy after a significant sell-off in crypto markets.

In a November 2022 interview, Davies pushed back on claims from Teneo that he and Zhu were not cooperating with the liquidation process.

We've been cooperating throughout the whole way, he told CNBC.