Su Zhu, the co-founder of the collapsed crypto hedge fund Three Arrows Capital (3AC), was arrested in Singapore on Friday. Zhu was taken into custody while attempting to leave the country from Singapore’s Changi Airport, as reported earlier by Bloomberg.
Teneo, the liquidation firm in charge of liquidating 3AC’s assets, says it received a committal order against Zhu after he failed to comply with a court order that compelled him to cooperate with the liquidation process. That committal order directs Singaporean police to arrest Zhu and hold him in prison for four months. Teneo says it obtained a “similar” committal order for 3AC’s other co-founder, Kyle Davies.
During his time in prison, Teneo says the liquidators will engage with Zhu on “matters relating to 3AC, focusing on the recovery of assets that are either the property of 3AC or that have been acquired using 3AC’s funds.” The firm adds that liquidators “will pursue all opportunities to ensure Mr Zhu complies in full with the court order.”
3AC filed for bankruptcy last July just as the crypto market began to slip. Shortly after its collapse, Teneo reported that it couldn’t find Zhu or Davies. At the time, a representative for the co-founders claimed they were ducking the liquidators over “threats of physical violence.” Earlier this month, Singapore’s central bank banned Zhu and Davies from managing, directing, or becoming a shareholder “of any capital market services firm” for the next nine years.