Zhu Su, co-founder of the defunct cryptocurrency hedge fund Three Arrows Capital (3AC), was arrested at Changi Airport while attempting to leave Singapore on Friday afternoon. Following a court order that required him to cooperate with the liquidators’ investigations, Zhu has been sentenced to four months in prison under a committal order granted by the Singapore Courts. The order demanded him to account for his activities as a co-founder and investment manager of 3AC.
In a parallel development, a similar committal order with a four-month imprisonment term was granted against 3AC’s other co-founder, Kyle Davies. However, Davies’ current whereabouts are unknown. The court order against Zhu allows the liquidators, represented by Teneo, to engage with him during his prison sentence, focusing on the recovery of assets belonging to 3AC or acquired using 3AC’s funds.
Teneo, the joint liquidator for 3AC, emphasized their priority in recovering 3AC’s assets and maximizing returns for creditors. They stated that they would actively pursue discussions with Zhu concerning matters related to 3AC and make necessary court applications as required. The liquidators have been unwavering in their commitment to adhering to the law and ensuring that justice is served.
This development follows regulatory actions taken earlier this year. The Monetary Authority of Singapore (MAS) had issued nine-year prohibition orders against Zhu Su and Kyle Livingston Davies, former executives of Three Arrows Capital. These orders were a consequence of multiple financial regulation breaches, including failure to notify MAS about employment changes and providing false information.
Effective from September 13, 2023, the prohibition orders bar Zhu Su and Kyle Davies from engaging in any regulated activity under the Securities and Futures Act.The sentencing of Zhu Su and the ongoing efforts of the liquidators mark a significant step in the legal proceedings surrounding Three Arrows Capital, shedding light on the regulatory measures being taken to address financial misconduct within the cryptocurrency sector.
