30th September 2023 – (Singapore) A co-founder of the defunct cryptocurrency hedge fund, Three Arrows Capital, has been apprehended in Singapore and sentenced to four months in jail, as confirmed by the company’s liquidator.
Last year, the Singapore-based firm filed for bankruptcy after experiencing a significant decline in fortunes when the prices of its invested assets plummeted in the volatile crypto markets.
According to a statement released by Three Arrows’ liquidator, Teneo, Su Zhu was detained at Changi Airport while attempting to leave the country on Friday (29th September).
Zhu’s arrest followed Teneo’s recent acquisition of a committal order against him for non-compliance with the investigation into the company’s collapse.
“Teneo said that the Singapore Courts issued a committal order sentencing Mr. Zhu to four months’ imprisonment,” stated the liquidator.
Kyle Davies, the other co-founder, has also been sentenced to four months in prison, but his current whereabouts are unknown, Teneo added.
The Monetary Authority of Singapore (MAS) has imposed a ban on both individuals, preventing them from engaging in regulated investment activity for a period of nine years, according to Teneo.
Appointed by a court in the British Virgin Islands, the liquidator’s task is to recover Three Arrows’ assets and provide returns to its creditors in the wake of the company’s failure.
However, Teneo has accused Zhu and Davies of obstructing the efforts to return funds by withholding cooperation and failing to provide information voluntarily.
In a June profile published in The New York Times, the co-founders mentioned their extensive travels following the hedge fund’s collapse, including trips to the Indonesian resort island of Bali where they engaged in activities such as surfing and meditation.