Three Arrows co-founder Su Zhu arrested in Singapore, says liquidator firm

Liquidator Teneo in a statement said that Zhu had been arrested and charged

September 29, 2023 10:26 am

Gorodenkoff/Shutterstock modified by Blockworks

Teneo, the liquidator of Three Arrows Capital (3AC), said Friday that Su Zhu, the failed crypto hedge fund’s co-founder, has been apprehended by authorities in Singapore.

Teneo, in a statement shared with Blockworks, announced Zhu’s apprehension and stated that the former hedge fund founder faces four months in prison under a committal order.

The arrest is said to have occurred as Zhu sought to leave Singapore by airplane. News of the arrest has yet to be independently corroborated by Singapore authorities.

The order was applied for and obtained by Teneo on Sept. 25 after Zhu refused to comply with a court order requiring him to cooperate with the liquidators. Teneo added that “a similar committal order was granted against the other co-founder of 3AC, Mr. Kyle Livingston Davies.”

Singapore recently issued a multi-year market activity ban against both Zhu and Davies, which went into effect on Sept. 13.

The Monetary Authority of Singapore said that 3AC misled the regulator and committed multiple violations between August 2020 and January 2022.

“MAS takes a serious view of Mr. Zhu’s and Mr. Davies’ flagrant disregard of MAS’ regulatory requirements and dereliction of their directors’ duties. MAS will take action to weed out senior managers who commit such misconduct,” Loo Siew Yee, assistant managing director of payments and financial crime at MAS said in a statement at the time.

Three Arrows collapsed in the summer of 2022 following the infamous depegging of the UST stablecoin.

Updated Sept. 29, 2023 at 10:48 am ET: Added additional context.

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