Three Arrows Co-founder Su Zhu Arrested in Singapore
Zhu faces a 4-month jail term while his co-founder is still missing.
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Su Zhu, co-founder of the now-defunct cryptocurrency hedge fund Three Arrows Capital (3AC), has been sentenced to four months in prison in Singapore after being apprehended at an airport while allegedly trying to flee the country.
The sentencing comes after liquidation firm Teneo received a committal order against Zhu due to his lack of cooperation with an ongoing investigation into 3AC’s collapse. Teneo is seeking to recover more than $1 billion on behalf of 3AC’s creditors, who are owed approximately $3 billion in total.
Teneo will work with Zhu on matters related to 3AC while he serves his sentence, in hopes of recovering additional lost funds.
Authorities have been unable to apprehend Kyle Davies, Zhu’s co-founder at 3AC, even though he faces the same 4-month sentence.
Once considered a highly successful crypto hedge fund, 3AC suffered major losses in 2022 from failed investments in tokens like Do Kwon’s Terra Luna.
Zhu’s arrest comes amid increased legal scrutiny of alleged misconduct in the crypto industry. FTX founder Sam Bankman-Fried was arrested in December for fraud in relation to his exchange’s collapse. Other executives like Alex Mashinsky of Celsius and Terra’s Do Kwon are also facing legal action for their roles in major crypto failures.