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- Su Zhu was apprehended while trying to flee the country.
- The MAS imposed a nine-year prohibition on Zhu and Davies earlier this month.
On Friday afternoon, authorities in Singapore took Su Zhu, a co-founder of the now-defunct cryptocurrency hedge firm Three Arrows Capital, into custody at Changi Airport. According to Teneo, the firm responsible for liquidating the failed hedge fund, he was trying to escape the country at the time of his arrest.
Both Zhu and his business partner, Kyle Davies, received four-month prison sentences from Singaporean courts after it was found that they had not cooperated with the liquidators looking into the fund’s downfall and the billions of dollars in claims from creditors.
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Teneo also indicated that another co-founder of 3AC, Kyle Davies, has been served a committal order mandating his four-month imprisonment. Teneo reports that they are still unaware of Davies’s whereabouts. The hedge firm was a significant player in the cryptocurrency industry, managing nearly $10 billion in assets at its peak, and filed for Chapter 15 bankruptcy in New York in July 2022.
The hedge fund’s bankruptcy, following the collapse of the Terra/LUNA project, prompted major crypto firms to restructure their operations and limit client withdrawals during a market downturn that took many large companies by surprise.
The Monetary Authority of Singapore (MAS) enacted a nine-year restriction on Zhu and Davies from owning or managing any registered capital markets business earlier this month.
The Dubai cryptocurrency authority issued a caution to the pair in May for operating its new bankruptcy exchange OPNX without the requisite licenses. Additionally, Davies has disregarded subpoenas from a New York court relating to the failure of 3AC.
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