- Su Zhu, co-founder of the defunct cryptocurrency hedge fund Three Arrows Capital, was last week arrested in Singapore
- Zhu has been held for failing to comply with court orders and faces a four-month sentence
- Three Arrows co-founder Kyle Davies is also sought but cannot be found
Su Zhu, co-founder of the defunct cryptocurrency hedge fund Three Arrows Capital, was arrested on Friday while attempting to leave Singapore after failing to comply with court orders. His arrest follows a committal order issued by the Singapore courts against Zhu, who is set to serve a four-month sentence as a result. The whereabouts of Three Arrows’ co-founder, Kyle Davies, who is also being sought by authorities and is slated for a four-month prison term on the same charges, remain unknown.
Zhu Failed to Comply With Court Order
The news was broken by Teneo, the court-appointed Three Arrows liquidator, which took legal action against Zhu after he refused to comply with a court order requiring him to account for his actions as the hedge fund’s founder and investment manager. Three Arrows collapsed in June 2022, primarily due to excessive exposure to the algorithmic stablecoin protocol Terra, which had imploded the previous month.
Both Zhu and Davies admitted to having close ties with Terra co-founder Do Kwon, who was found guilty of document tampering in Montenegro in June and is wanted on civil charges in the US.
Hunt for Kyle Davies
Following Three Arrows’ collapse, Zhu and Davies went into hiding, citing death threats against them. During this time, they launched OPNX, a new exchange designed to facilitate the exchange of bankruptcy claims for other struggling crypto companies, including FTX.
Zhu’s Three Arrows co-founder, Kyle Davies, has also been committed to four months in prison, but Teneo said that his whereabouts “remain unknown at this point in time.”
Earlier this month, the Monetary Authority of Singapore imposed a nine-year ban on both Zhu and Davies, prohibiting them from participating in regulated investment activities.
