The co-founder of Three Arrows Capital was arrested at Changi Airport, Singapore.
Zhu Su, the co-founder of Three Arrows Capital, was arrested at Changi Airport in the afternoon, on Friday, 29 September 2023. He was stopped while attempting to travel out of Singapore.
Under a committal order granted by the Singapore courts, Zhu has been sentenced to four months in prison. Meanwhile, his fellow co-founder Kyle Livingston Davies also faces four months imprisonment. However, Davies’ whereabouts are unknown, according to the joint liquidator Teneo, as cited by the «Business Times».
Recovery of Assets
Earlier, the Monetary Authority of Singapore (MAS) issued prohibition orders against Zhu and Davies. Effective from 13 September 2023, both are not allowed to conduct regulated investment activity for nine years.
During Zhu’s prison sentence, the liquidators will seek to engage with him on matters relating to Three Arrows. They will focus on the recovery of assets, that are either the property of the firm or that have been acquired using its funds.
Crypto Market Downturn
Teneo said it may also make applications for further court orders as required. «Throughout the process, the liquidators’ priority has been recovering the assets of Three Arrows and maximizing returns for its creditors,» the firm said.
Singapore-based Three Arrows collapsed in 2022 amid a crypto market downturn. Liquidators have obtained court orders to recover $1.3 billion in losses but claim that the two have failed to cooperate meaningfully in investigations.
