- The co-founder of crypto hedge fund 3AC has been arrested at Changi Airport.
- Singaporean Courts have handed down four-month prison sentences.
- Legal action has been taken against Su Zhu due to non-compliance.
Su Zhu, a co-founder of the ill-fated cryptocurrency hedge fund known as Three Arrows Capital (3AC), found himself in the hands of Singaporean authorities when he attempted to depart from Changi Airport on Friday, September 29th.
3AC Co-founders Receive Four Month Imprisonment
In a swift legal turn of events, the Singaporean Courts swiftly handed him a four-month prison sentence. This development came to light through an email update from Teneo, 3AC’s joint liquidator, on the same Friday evening.
Kyle Davies, the other co-founder of 3AC, received a similar four-month imprisonment sentence through a committal order, but his current whereabouts remain a mystery, as reported by Teneo.
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The committal order against Zhu issued on September 25th, arose due to his deliberate noncompliance with a court order mandating his cooperation with the liquidators’ investigative efforts. This court order required Zhu to provide a detailed account of his activities as a co-founder of 3AC and its former investment manager.
Throughout Zhu’s upcoming four-month incarceration, the liquidators intend to engage with him regarding all matters related to 3AC. Their primary focus will be on recovering assets that belong to 3AC or were acquired using the fund’s resources. Teneo also reserves the option to file further court orders as the situation demands.
On the Flipside
- Su and Davies contested the allegations against them, claiming that the liquidators unfairly targeted them and that their actions were in the best interest of 3AC’s stakeholders.
- While Su Zhu has been apprehended and sentenced, the fate of 3AC’s other co-founder, Kyle Davies, remains a mystery.
Why This Matters
The arrest and imprisonment of ZHU Su, co-founder of the troubled cryptocurrency hedge fund Three Arrows Capital (3AC), is a stark reminder of the crypto industry’s legal and regulatory challenges. It underscores the importance of compliance and accountability within the sector, a critical aspect of its long-term stability and growth.
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To discover the latest venture by 3AC founders, click here:
3AC Founders Launch OPNX Crypto Exchange While on the Run
To learn more about a recent crypto mishap, read here:
Mixin Kernel Suffers $200M Drain: Here’s What Happened
