Crypto Tycoon Zhu Su Of Three Arrows Capital Nabbed In Daring Escape Attempt From Singapore

According to latest reports, the co-founder of the now-defunct crypto hedge fund Three Arrows Capital, was apprehended in an escape attempt from Singapore. This arrest was made amid growing concerns surrounding his former hedge fund and the recent launch of his crypto exchange, OPNX.

Zhu Su Is Sent To Prison For 4 Months

Zhu Su, the co-founder of the now-defunct cryptocurrency hedge fund Three Arrows Capital (3AC), faced arrest at Changi Airport as he tried to depart Singapore. Later that evening, 3AC’s joint liquidator, Teneo, informed The Business Times that the Singapore Courts had sentenced Zhu to a four-month prison term.

This sentencing stems from a committal order that Teneo secured against Zhu on Sep 25, citing his intentional non-compliance with a previous court directive. This directive mandated Zhu to collaborate with the liquidation investigations and provide a detailed account of his roles and activities as 3AC’s co-founder and former investment manager.

In a parallel development, another committal order, also carrying a four-month imprisonment term, was issued against Kyle Davies, 3AC’s other co-founder. Davies’ current location, however, remains a mystery, as noted by Teneo.

Teneo said, “Throughout the process, the liquidators’ priority has been recovering the assets of 3AC and maximising returns for its creditors.”

During Zhu’s incarceration, Teneo plans to liaise with him concerning 3AC, primarily aiming at the retrieval of assets either owned by 3AC or procured using its funds. Depending on the situation, Teneo might also approach the court for additional orders.

Singapore’s Legal Move Against Three Arrows Capital

Earlier this month, Singapore declared a nine-year prohibition on the founders of the defunct crypto hedge fund, Three Arrows Capital, Zhu Su and Kyle Davis, barring them from engaging in regulated capital market activities.

The Monetary Authority of Singapore, the nation’s central bank and financial overseer, stated that, both individuals are prohibited from holding directorial roles or becoming significant stakeholders in capital market firms within the city. Their involvement in activities such as fund management, asset custodial services, and product financing is also restricted.

Loo Siew Yee, the assistant managing director for policy, payments, and financial crime at the central bank, conveyed that the MAS was deeply troubled by the overt disregard for its regulations by Mr. Zhu and Mr. Davies. She also emphasized the authority’s dedication to implementing strict actions against senior executives involved in such wrongdoing.

The regulatory body highlighted that Zhu and Davies, in their roles as directors, bore the primary responsibility to ensure 3AC’s adherence to regulatory standards. However, findings from the MAS investigation indicated their failure to uphold these duties.

3AC, once stationed in Singapore, emerged as a notable victim during last year’s crypto market downturn. The firm invested in multiple crypto ventures, including Terra Classic USD. This stablecoin, once pegged to the U.S. dollar, sharply declined in 2022, leading to the industry’s “crypto winter.” Facing falling crypto values, 3AC faced financial challenges and went into liquidation as creditors pursued their assets.