3AC Co-Founder is Arrested in Singapore
- 3AC collapsed in 2022 due to excessive exposure to Terra.
- Su Zhu and Kyle Davies, 3AC’s co-founders, have kept a low profile following the hedge fund’s collapse.
- The Monetary Authority of Singapore has banned Zhu and Davies from participating in regulated investment activities for nine years each.
Su Zhu, one of the founders of the defunct cryptocurrency hedge fund Three Arrows Capital (3AC), has been detained at Changi Airport in Singapore. The news has been confirmed by the company’s liquidator, Teneo.
Teneo claimed that Zhu’s refusal to comply with a court order for him to account for his actions as the founder and investment manager of 3AC led to the company filing and obtaining its committal order against him on Monday.
A statement from the company read:
Su Zhu was apprehended at Changi Airport while attempting to travel out of Singapore following a committal order by the Singapore courts against him. Mr. Zhu will be held in prison to serve his sentence for four month
3AC was one of the companies that suffered from exposure to Terra. Zhu and cofounder Kyle Davies also admitted that they were close friends with Terra co-founder Do Kwon. Following 3AC’s collapse, Zhu and Davies disappeared from public sight, fearing threats to their lives.
Teneo said that it plans to question Zhu about 3AC to help with asset recovery and ensure he follows the court’s ruling. It said in a statement:
The liquidators will pursue all opportunities to ensure Mr. Zhu complies in full with the court order made against him for the provision of information and documents relating to 3AC and its former investment manager during the course of his imprisonment and thereafter, and may make applications for further court orders as required.“
The Monetary Authority of Singapore has banned Zhu and Davies from participating in regulated investment activities for nine years each.
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