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 has been arrested in Singapore airport, has been 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 cryptocurrency hedge fund, reported that the firm's co-founder Su Zhu was arrested at the Changi Airport in Singapore while he was trying to leave the country.

Teneo, a financial advisory firm controlling the liquidation and management of affairs for the defunct crypto hedge fund, said it got a 'committal order' against Zhu after he failed to comply with court orders to cooperate with the liquidation investigation. In a statement, Zhu's family said he was sentenced to four months in prison.

The advisory firm added that a similar committal order was granted against the other co-founder of 3AC, Kyle Davies, who is also being called for a four-month prison sentence. Teneo has confirmed that Davies' whereabouts are unknown.

The company had a fortune of around $10 billion in assets and was a top player in the crypto market. In July 2022, 3AC filed for Chapter 15 bankruptcy in New York.

The former insolvency of the hedge fund forced major crypto players to alter their operations and limit customer withdrawals amid a crypto sell-off that appeared to catch plenty of big firms off guard at the time, particularly after the collapse of the Terra/LUNA project.

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