Su Zhu, the co-founder of the collapsed crypto hedge fund Three Arrows Capital (3AC), has been arrested in Singapore as he attempted to leave the country. The arrest was made based on a court order compelling Zhu to cooperate with the liquidation process of 3AC’s assets, which he failed to comply with. Teneo, the liquidation firm in charge of the process, obtained a committal order directing Singaporean police to detain Zhu for a period of four months. A similar order was also obtained for 3AC’s other co-founder, Kyle Davies.
During Zhu’s time in prison, Teneo plans to engage with him regarding matters related to 3AC and the recovery of its assets, including those acquired using the fund’s funds. The liquidation firm is determined to ensure Zhu’s full compliance with the court order and will explore all opportunities to achieve this.
This arrest marks a significant development in the liquidation process of Three Arrows Capital, as it seeks to recover and manage the assets of the collapsed hedge fund. Teneo’s efforts to engage with Zhu and hold him accountable for his cooperation highlight the seriousness with which the liquidators are approaching their responsibilities. The outcome of this situation could have implications for the recovery of 3AC’s assets and may provide more clarity on the reasons behind the fund’s collapse in the first place.