Crypto hedge fund Three Arrows Capital’s (3AC) co-founder, Su Zhu, was reportedly arrested in Singapore on Friday while attempting to flee the country. The liquidators who released the development stated that he was apprehended at Changi Airport after he refused to comply with the ongoing investigations into the liquidation of the crypto firm.
Teneo, which is in charge of the liquidation process for 3AC, stated that it sought an arrest warrant with a court order to sentence Zhu to prison after failing to cooperate with the investigation. The co-founder would now spend four months behind bars, the liquidator confirmed.
Zhu Not Complying With Investigation
3AC liquidators alleged that they pushed for the arrest warrant because Zhu “deliberately” refused to come clean on his management of the hedge fund before its bankruptcy. Teneo applied for the committal order on September 25 and had Zhu arrested while he was trying to flee the country.
3AC’s other founder, Kyle Davies, received a similar committal order, but his whereabouts have been unknown since his apprehension. Zhu and Davies founded the Singapore-based hedge fund firm in 2012, but the British Virgin Islands ordered them to shut down the firm ten years later. The Singaporean Central Bank earlier this month slapped a 9-year ban on the 3AC founders.
Teneo Would Continue Investigating Zhu
The liquidator stated that it would continue to inquire with Zhu about his management of 3AC during jail time. Teneo insisted that it is looking out for assets in his possession that belong to 3AC or ones that he acquired using the company’s funds.
“Throughout the process, the liquidators’ priority has been recovering the assets of 3AC and maximizing returns for its creditors, Teneo noted.
The liquidators also stated that they would pursue further court orders if they did not make progress with Zhu after four months of jail time.
