• Su Zhu was attempting to escape the country when he was arrested.
  • The MAS issued a nine-year ban on Zhu and Davies earlier this month.

On Friday afternoon, Singapore authorities detained Su Zhu, a co-founder of the defunct cryptocurrency hedge firm Three Arrows Capital, at Changi Airport. According to Teneo, which is in charge of winding down the failed hedge firm, he was attempting to escape the country when he was arrested.

Both Zhu and his co-founder, Kyle Davies, were given four-month prison terms by the Singaporean courts after it was determined that the duo had failed to engage with the liquidators investigating the fund’s collapse and addressing the billions of dollars in claims from creditors.

Looking Out for Other Co-founder

Teneo also stated that another 3AC co-founder, Kyle Davies, has been issued a committal order calling for his four-month prison time. Teneo claims they still don’t know where Davies is. The hedge firm was a key participant in the cryptocurrency sector and handled almost $10 billion in assets at its peak. It filed for Chapter 15 bankruptcy in New York in July 2022.

After the Terra/LUNA project failed, the bankruptcy of the hedge fund caused large crypto players to reorganize their operations and restrict client withdrawals in the midst of a crypto sell-off that caught many giant corporations by surprise.

The Monetary Authority of Singapore (MAS) issued a nine-year ban on Zhu and Davies owning or managing any registered capital markets business earlier this month.

The Dubai cryptocurrency authority issued a warning to the duo in May for running its new bankruptcy exchange OPNX without the proper licenses. Davies has also ignored subpoenas issued by a New York court in connection with the demise of 3AC.

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