Cointelegraph has learned from bankrupt hedge fund co-liquidator Teneo that Three Arrows Capital (3AC) co-founder Su Zhu was arrested in Singapore while trying to leave the country.
Tenio announced in a statement that Zhu “was arrested at Changi Airport while trying to leave Singapore after a detention order was issued against him by a Singaporean court.”
A detention order is used to send someone to prison for contempt of court. Teneo obtained a detention request in Singapore on September 25, claiming Zhu failed to “comply with court orders.”
The investigation is related to efforts to recover funds for 3AC’s creditors. The $10 billion hedge fund collapsed in 2022 as the Terra ecosystem collapsed. 3AC had excessive leverage on a long position in a cryptocurrency and borrowed hundreds of millions of dollars from crypto lending protocols.
Co-founders Zhu and Kyle Davis have been dodging liquidators since the company failed, despite being active on social media. A detention order issued in Singapore sentenced Chu to four months in prison. A similar detention order was issued for Davis, Teneo said.
“As a result, Mr Zhu will be held in prison to serve a four-month term under a detention order, during which time the liquidators will seek to engage with him in relation to 3AC, focusing on the recovery of the following assets: the property or use of 3AC Property acquired with 3AC’s funds. The liquidators will seek every opportunity to ensure that Mr Zhu fully complies with the court orders made against him, in the process providing information and documents relating to 3AC and its former investment manager during and after his imprisonment. and may apply for further court orders as necessary.”
Davis’ whereabouts remain unknown. The Monetary Authority of Singapore banned Chu and Davis from regulated investment activities for nine years each.
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