Su Zhu, the founder of the troubled crypto hedge fund Three Arrows Capital (3AC) and co-founder of the OPNX exchange, has been apprehended by Singaporean authorities while attempting to leave the country. He now faces a four-month prison sentence. Teneo, the liquidator for 3AC, announced this development.
Zhu’s arrest was made possible through a committal order issued by the Singapore courts and a similar order with a four-month prison term has been granted against Kyle Davies, another co-founder of Three Arrows Capital, although Davies’ whereabouts remain unknown.
Teneo obtained the committal order on September 25 after Zhu refused to cooperate with the liquidators in accounting for his activities as the co-founder of 3AC and its former investment manager. Zhu and Davies have been controversial figures in the crypto space and their arrest was met with satisfaction by many in the crypto community.
During Zhu’s imprisonment, Teneo intends to interrogate him regarding the assets of Three Arrows Capital. The recovery of 3AC’s assets and maximizing returns for creditors have been the liquidators’ top priorities throughout the liquidation process.
Liquidators have previously complained about Zhu and Davies’ uncooperative behavior during the liquidation process. Despite receiving subpoenas, both founders ignored legal notices while maintaining an active presence on social media platforms. Additionally, Zhu and Davies announced the launch of OPNX, a new cryptocurrency exchange, in partnership with the founders of CoinFLEX.
Singapore’s Monetary Authority has issued a multi-year market activity ban against Zhu and Davies, effective September 13. This ban prohibits them from engaging in regulated financial activities in Singapore and its associated jurisdictions.
According to the Monetary Authority of Singapore, Zhu and Davies misled the market regulator and committed several violations between August 2020 and January 2022.
Loo Siew Yee, the assistant managing director of payments and financial crime at the Monetary Authority of Singapore, emphasized the seriousness of their misconduct and the authority’s commitment to addressing such behavior among senior managers.
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