Background
Su Zhu, co-founder of bankrupt cryptocurrency lender Three Arrows Capital (3AC), is reportedly set to be released soon after facing an extensive interrogation in a Singapore court, according to Bloomberg. Zhu was arrested in Singapore in September 2023 when he attempted to flee the country after a local court sentenced him to four months of imprisonment. 3AC's joint liquidator, Teneo, stated that Zhu was planning to assist with matters related to 3AC and help recover assets from the defunct firm.
The Interrogation
Zhu recently faced his first interrogation in Singapore, responding to Teneo lawyers in a two-day court hearing. Lawyers sought details about how the fund failed and the whereabouts of assets. Based on sources familiar with the matter, Bloomberg reported that Zhu is expected to be released this month based on standard provisions for good behavior.
Teneo's Statement
Teneo, 3AC's joint liquidator, stated in September that they will pursue all opportunities to ensure Zhu complies with the court order made against him. They will require him to provide information and documents relating to 3AC and its former investment manager during and after his imprisonment.
3AC's Background
3AC is a Singaporean crypto hedge fund founded in 2012 by Kyle Davies and Su Zhu. The firm failed to meet margin calls from its lenders during a crypto market sell-off in 2022 when Bitcoin (BTC) dropped below $20,000. 3AC reportedly borrowed Bitcoin from another collapsed crypto lending firm, BlockFi, but could not meet a margin call as conditions tightened along with the bear market.
Civil Matter
The proceedings between Zhu and Teneo's representatives are reportedly a civil matter, as neither Zhu nor Davies have faced any criminal charges in Singapore. Davies, who remains at large, received the same committal order sentencing him to four months of imprisonment.
Singapore's Central Bank Involvement
In September 2023, Singapore's central bank issued nine-year prohibition orders to Davies and Zhu over alleged violations of the country's securities laws at 3AC.
