Su Zhu, the co-founder of cryptocurrency hedge fund Three Arrows Capital (3AC), has been sentenced to four months in prison by a Singapore court. This development follows significant sanctions and a nine-year trading ban imposed on Zhu and his co-founder, Kyle Davies, by the Monetary Authority of Singapore (MAS) just last month. Earlier today, Zhu was apprehended at Changi Airport as he attempted to depart from Singapore.
The sentencing was confirmed by updates from Teneo, the joint liquidators overseeing the dissolution of Three Arrows Capital. According to the statement released by Teneo, Zhu’s arrest came after a committal order was granted by the Singapore Courts, in response to his deliberate noncompliance with a prior court order. This previous order had compelled him to cooperate with ongoing liquidation investigations and provide a detailed account of his activities related to 3AC.
The committal order, obtained on September 25, was issued due to Zhu Su’s apparent evasion of legal obligations. His arrest at the airport while trying to leave the country underscores the seriousness of his noncompliance.
In light of the court’s decision, Teneo liquidators now have the authority to make additional requests and apply for further court actions to ensure Zhu Su’s full compliance with the court order, especially regarding the provision of information and documents related to 3AC during and after his detention.
The downfall of Three Arrows Capital, a cryptocurrency hedge fund, began with its court-ordered liquidation in the British Virgin Islands in late June 2022. The company subsequently filed for bankruptcy in early July, sending shockwaves throughout the cryptocurrency industry.
Three Arrows Capital faced immense challenges and losses during the cryptocurrency market’s collapse, impacting not only the fund itself but also various other cryptocurrency-related companies associated with it.
Zhu Su’s prison sentence represents a significant development in the ongoing legal proceedings surrounding Three Arrows Capital and its co-founders. It remains to be seen how this will impact the resolution of the cryptocurrency hedge fund’s liquidation and its implications for the broader cryptocurrency industry.
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