Cryptonews reported last week that a 36-year-old individual, identified as Su Zhu, the co-founder of the defunct crypto hedge fund Three Arrows Capital (3AC), has been arrested in Singapore. The Singapore Police officially confirmed the arrest, responding to a Reuters query on Thursday.
According to the Singapore Police statement to Reuters, the 36-year-old man was arrested on September 29 at Changi Airport in connection with 3AC, which filed for bankruptcy in mid-2022 following a significant decline in cryptocurrency prices. The individual was allegedly attempting to flee.
The police response followed a query from Reuters seeking details on Su Zhu’s arrest. The police did not disclose the arrested man’s identity but explicitly mentioned Su Zhu, who celebrated his 36th birthday in April 2023.
Both Su Zhu and co-founder Kyle Davies have been sentenced to a four-month prison term, as disclosed by Teneo, the fund’s liquidator. Kyle Davies’ current whereabouts remain unknown.
Co-Founder of Three Arrows Capital Arrested in Singapore Over Fund’s Collapse
Su Zhu was found guilty of willfully disobeying court orders that required him to assist Teneo in investigating claims from creditors and the collapse of the multibillion-dollar fund.
The collapse of 3AC had a widespread impact on the industry, affecting numerous investors’ savings and causing other companies like Voyager Digital to face bankruptcy.
Despite the widely reported collapse, Teneo’s first-year update to creditors on the liquidation proceedings indicated that the fund became insolvent in early May 2022, predating broader awareness of the situation, as reported by the Wall Street Journal.