Singapore police have confirmed the arrest of a 36-year-old man at Changi Airport on September 29 . While the police did not disclose the identity of the arrested individual, it has been widely reported that the person in question is Su Zhu, one of the founders of the bankrupt crypto hedge fund Three Arrows Capital.
Background:
Three Arrows Capital was a prominent player in the cryptocurrency market, managing an estimated $10 billion in assets at its peak. However, the hedge fund filed for Chapter 15 bankruptcy in New York in July 2022, following a crypto sell-off and the collapse of the Terra/LUNA project. The fund’s insolvency had significant repercussions in the industry, leading to operational changes and customer withdrawal limitations for major crypto players.
Arrest and Sentencing:
Su Zhu’s arrest at Changi Airport comes after he failed to comply with court orders to cooperate with the liquidation investigation of Three Arrows Capital. The arrest was made on September 29, and Su Zhu is now facing imprisonment for a period of four months. The liquidators of the fund, Teneo, obtained a “committal order” against Su Zhu, leading to his arrest and subsequent sentencing.
Co-Founder Kyle Davies:
In addition to Su Zhu, the other co-founder of Three Arrows Capital, Kyle Davies, is also facing a similar committal order and is being called for arrest and imprisonment. However, as of now, Davies’ whereabouts remain unknown.
Recovery of Assets:
While Su Zhu is in custody, Teneo, the financial advisory firm handling the liquidation of Three Arrows Capital, has stated that it will work with him on matters related to the recovery of assets belonging to the fund or acquired using its funds. Teneo may also seek further court orders against Su Zhu.