In an advanced report, the co-founder of bankrupt hedge fund Three Arrows Capital (3AC), Su Zhu, was reportedly arrested by the Singaporean enforcement unit. The report was brought to light by Teneo, an affiliate company of 3AC.
The Singaporean regulators arrested Zhu when he was attempting to flee the country. The arrest occurred at Changi Airport in Singapore when Zhu was boarding a flight to an undisclosed destination. His arrest came after a court in Singapore had granted a committal order to the troubled investor.
3AC Co-Founder Arrested
Following his arrest, Zhu will serve a four-month jail term. The Teneo team stated that Zhu will join his former business partner Kyle Davies, who was also sentenced to four months at an unknown destination.
The report indicates that the Teneo team received a committal order against Zhu a few days ago. On September 25, the liquidator of 3AC received a committal order against Zhu. In the court document, Zhu is requested to collaborate with the liquidators in the ongoing investigations.
In the filing, the court stated that the co-founder of 3AC failed to honor the court orders. Zhu has been battling multiple charges that emerged after the collapse of 3AC.
In June, the domino effect that stemmed from the collapse of the Terra ecosystem exposed the 3AC to losses.
The report demonstrated before the fallout of Terra Zhu and Davies established a solid relationship with Do Kwon, who is currently facing legal charges in Montenegro.
Court Issues Committal Order to Co-Founder of 3AC
Before the collapse of the hedge fund, the 3AC team managed assets worth around $10 billion. At that time, 3AC was a lipchin in the financial and crypto industry, providing premium hedge fund services.
Shortly after the collapse of 3AC, they went into hideouts due to numerous threats from the affected customers. In July, the 3AC team filed for Chapter 15 of the bankruptcy protection to protect its assets. After the long silence, Zhu and Davvies established a significant comeback by establishing a new exchange, OPNX, the launching of OPNX aimed at enabling investors to trade their bankruptcy claims.
Besides the efforts to recover the customer’s funds, the Teneo team anticipates that the arrest of the co-founders of 3AC will assist in the recovery plan. The Teneo team anticipates that the arrest of Zhu and Davies will force the two to comply with the court orders.