Zhu Su, co-founder of the now-defunct Three Arrows Capital, has been arrested in Singapore, a report by Bloomberg said. According to an email update, Su was taken into custody at Changi Airport while attempting to leave the city-state.
The report reveals a committal order issued by the Singapore Courts against Su, with Teneo, the joint liquidators of 3AC, securing the order on September 25 of this year. Su’s refusal to cooperate with the liquidators and ongoing investigations has exacerbated the situation. As per the report, Su is expected to face a four-month prison sentence. Kyle Davies, the other co-founder of 3AC, is subject to a similar order, although his current whereabouts remain unknown to the authorities.
The arrest follows mounting issues related to his former hedge fund and his newly established crypto exchange, OPNX. The order outlines the liquidators’ intention to engage with Su during his imprisonment to focus on the recovery of assets linked to 3AC or acquired using its funds.
Notably, Three Arrows Capital declared bankruptcy following the TerraUSD incident last year, causing widespread market repercussions and substantial financial losses. Despite this, the management of 3AC has yet to face significant legal consequences.
In an unexpected move, they launched a crypto exchange pledging to donate a portion of its earnings to victims who endured the fallout. However, this venture has encountered heightened scrutiny from various regulatory bodies.
