Zhu Su’s Address Receives and Swaps 3.7M GEAR Tokens in First Transaction Since Arrest

In a surprising move, an Ethereum address linked to Zhu Su, the co-founder of the defunct crypto hedge fund Three Arrows Capital (3AC), received 3.752 million GEAR tokens on November 29.

Zhu’s Address Moves 

The 3.752 million GEAR tokens, equivalent to $29,432, were then exchanged for 14.5 ETH through CoW Protocol, a decentralized exchange (DEX) aggregator. According to on-chain data, the mentioned address still holds a balance of 17.62 ETH (worth approximately $36,305).

This marks the first transaction on this address since Zhu’s arrest on September 29. The last movement on the address before now occurred on September 21 – at the time, Zhu was still a free man.

The latest move might surprise many as Zhu has been in prison in Singapore since his arrest. How is this wallet making moves?

This suggests that Zhu was not in control of the private keys for this address at the time of the transaction. Moreover, it is possible that the GEAR tokens were swapped by someone who had access to Zhu’s private keys or that the tokens were moved through a mechanism that did not require his direct involvement. 

However, without further information, it is difficult to determine how the GEAR tokens were swapped from the address.

Zhu’s Arrest 

On September 29, liquidators for 3AC announced that Zhu was arrested at Singapore’s Changi Airport while attempting to leave the country.

The liquidators, Teneo, stated that the arrest came after they had obtained a “committal” order against Zhu for failing to comply with a court order that required him to cooperate with the liquidation process of 3AC.

The order directs Singaporean police to arrest Zhu and keep him in jail for four months. Teneo said it also obtained a similar order against 3AC’s other co-founder, Kyle Davies, but his whereabouts remain unknown.

Zhu’s arrest is linked to the collapse of 3AC in June 2022. The once-prominent hedge fund imploded after failing to meet margin calls from several lenders.