A co-founder of the bankrupt hedge fund, Three Arrows Capital (3AC) has been arrested in Singapore and sentenced. According to Teneo 3AC’s joint liquidator in an email to The Business Times, Zhu Su was apprehended at Changi Airport while traveling out of Singapore on 29th September.
Zhu Su was served a 4-month prison term by the Singapore Courts under a committal order. Alongside, Zhu Su’s other co-founder Kyle Davies was served a similar term of four months’ imprisonment. Teneo disclosed, however, stated that Kyle Davies’ whereabouts are unknown.
The court had ordered that Zhu account for his activities during his role as a 3AC co-founder and former investment manager. Upon non-compliance by the co-founder,, the joint liquidator sent in a committal order application against Zhu Su, citing that he had deliberately failed to comply with an order from the court requiring him to follow through with the liquidator’s investigations.
As Zhu serves the prison term, in the fourth month, “the liquidators will seek to engage with him on matters relating to 3AC, focusing on the recovery of assets that are either the property of 3AC or have been acquired using 3AC’s funds,” The Business Times mentioned. However, if necessary, Teneo may also apply for further court orders.
Teneo further testified that the liquidator’s focus is on recovering the assets of 3AC and maximizing returns for its creditors.
Three Arrows Capital (3AC) in November 2022 filed for Chapter 15 bankruptcy. The filing came in the wake of Voyager Digital halting trading services citing unpaid loans of $646 million by 3AC. Alongside, 3AC had uncleared debts of over $6 million with BitMex. However, it was reported that 3AC had invested $200 million in the crashed LUNA stablecoin.
Months later the founders of the 3AC opened a wait-list and launched a claims exchange, OPNX. It remains uncertain what the founders’ activities and intentions with the exchange are.
Furthermore, from September 13 the Monetary Authority of Singapore prohibited both co-founders from conducting regulated investment activity for nine years.
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