Good day everyone,
I hope you are all well and having excellent day, welcome to CryptoGod-1’s blog on all things crypto. In this post I will be looking at the recent apprehension of Su Zhu as he made an attempt to flee Singapore.
Su Zhu and 3 Arrows Capital
Su Zhu is a co founder of the now bankrupt crypto hedge fund Three Arrows Capital (3AC). The company was based in Singapore as a crypto based hedge fund. During its height of popularity the company was considered among the top crypto hedge funds with about $10 billion worth of assets under management in 2022.
The company was founded in 2012 by Kyle Davies and Su Zhu, before filing for bankruptcy in July of 2022. The business is know to have borrowed billions of dollars to fund its trading, and according to court filings it faces $3.5 billion in creditors' claims. It is claimed in excess of $3 billion was lost by 3AC between 2021 and 2022, making it one of the largest collapses of all time in terms of hedge-fund trading losses.
The broad decline of cryptocurrencies in 2022, along with the crash from Terra Luna, is widely associated with the collapse of 3AC. The company had invested approximately $200 million LUNA tokens in early 2022, but its crash to zero led to the eventual lose of billions across all coins and tokens, which helped push 3AC into bankruptcy.
Singapore and Beyond
Zhu was apprehended in Singapore's Changi Airport as he was attempting to flee the nation following a committal order by the Singapore courts against him, according to a disclosure made by Teneo, the fund's liquidator. Both founder of 3AC, Zhu and Davies, were recently sentenced to four months in prison through a committal order for contempt of court. The former 3AC executives were issued with subpoenas to cooperate with the investigations and activities of Teneo in discovering the issues which led to the implosion of the fund.
Zhu and Davies both remained active on social media following the collapse of the fund, but they also remained on the un from the firm’s liquidators and authorities. Both men have also been prohibited by the Monetary Authority of Singapore from floating regulated investments for nine years.
The arrest means Zhu will be required to serve the four-month prison sentence meted out against him. It was also announced by Teneo that while Zhu serves his sentence the firm would actively engage with him and look to recover all possible assets of 3AC and any possible property gotten through the sale of user assets.
“The liquidators will pursue all opportunities to ensure Mr Zhu complies in full with the court order made against him for the provision of information and documents relating to 3AC and its former investment manager during the course of his imprisonment and thereafter, and may make applications for further court orders as required.”
The firm have also noted that they may seek more court orders against the former co founder to ensure they receive maximum benefit for creditors. The whereabouts of Davies remains unknown at this time, even after a refusal to honour subpoenas by a New York court. Directives have been issued by authorities for the safe arrest of Davies so he can serve his sentence.
Have a great day.
Peace. CryptoGod-1.
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