Su Zhu, one of the co-founders behind the Three Arrows Capital hedge fund, found himself in custody at Changi Airport in Singapore last Friday, as reported by Teneo, the company’s liquidator. The hedge fund’s unfortunate collapse in 2022 had far-reaching ramifications across the industry, effectively ushering in a new era of cryptocurrency market downturn.
Su Zhu, together with his fellow co-founder Kyle Davies, faced the consequences of a committal order, resulting in a four-month prison sentence due to their failure to comply with a court directive. Kyle Davies’ current whereabouts remain undisclosed, as stated in the announcement.
Back in September, the Monetary Authority of Singapore imposed a nine-year ban on Su Zhu and Kyle Davies, prohibiting them from owning or managing any registered capital markets firm. This was a significant regulatory action taken against them.
Their troubles didn’t stop there. In May, they faced reprimands from Dubai‘s crypto regulatory body for their involvement in an unregulated exchange called OPNX, part of their new venture post-Three Arrows Capital. Moreover, Kyle Davies has chosen not to respond to subpoenas related to the collapse of 3AC, which were issued by a New York court.
The native token associated with their new project saw a substantial decline of 21%, with its market capitalization dwindling to a mere $40 million.