Cryptonews reported last week that Su Zhu, the co-founder of bankrupt crypto hedge fund Three Arrows Capital (3AC), has been arrested in Singapore. The local police have officially confirmed the arrest, responding to a Reuters query on Thursday.
Singapore Police said in a statement to Reuters that a “36-year-old man” was arrested on September 29 at the Changi Airport in connection with the 3AC, which filed for bankruptcy in mid-2022 following the plunge in cryptocurrency prices. He was ostensibly attempting to abscond.
The responses from the officials came after Reuters raised a query, asking for details on the arrest of Su Zhu.
However, the police haven’t revealed the arrested man’s identity or furnished any further information connected to the arrest. However, it is clear that the police have mentioned Su Zhu, who turned 36 in April 2023.
Zhu and co-founder Kyle Davies have each received a four-month prison term, according to a disclosure made by Teneo, the fund’s liquidator. Davies’ whereabouts are still unknown.
Zhu was found guilty of willfully disobeying court orders that required him to assist Teneo in its investigation of claims from creditors and the collapse of the multibillion-dollar fund.
When 3AC collapsed, a large swath of the industry tumbled down with it. The crisis drained the savings of millions of investors and dragged down other companies like Voyager Digital to bankruptcy.
However, according to Teneo, the first-year update to creditors on the liquidation proceedings stated that the fund became insolvent in early May 2022, even before it was widely reported, the Wall Street Journal wrote.
