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The co-founder of the bankrupt crypto firm Three Arrows Capital (3AC), Su Zhu, is set to be released this month after undergoing comprehensive questioning in a Singapore court. Zhu was arrested in Singapore in September 2023 when he tried to flee the country following a four-month prison sentence imposed by a local court. A former 3AC employee, Teneo, disclosed that Zhu had been making plans regarding matters related to 3AC.
Su Zhu To Be Released This Month
According to a Bloomberg report dated December 13, Zhu completed his first interrogation this week in Singapore and responded to his lawyers during a two-day hearing. Bloomberg, citing people familiar with the matter, stated that the lawyers sought details on how the company failed and where its assets were located.
Bloomberg’s sources suggest that Zhu will be released this month according to standard provisions, due to good behavior. In September, Teneo made the following statement: “Liquidators will pursue all opportunities to ensure that Mr. Zhu fully complies with the court order against him to provide information and documents related to 3AC and its former investment manager, during and after his imprisonment, and may apply for further court orders if necessary.”
How Did The Process Begin?
3AC began serving as a crypto hedge fund based in Singapore, founded by Kyle Davies and Su Zhu in 2012. The company failed to meet margin calls from its lenders in the crypto environment when Bitcoin dropped below $20,000 in 2022.
In the ongoing process, it was revealed that 3AC had borrowed Bitcoin from another bankrupt crypto lending company, BlockFi, but failed to meet a margin call due to tightening financial conditions amidst adverse market conditions.
Zhu and Davies, who have not faced any criminal charges in Singapore, announced that the ongoing transactions between Zhu and representatives of Teneo were a civil matter. Davies, who had been on the run since the beginning of the process, was also sentenced to four months in prison by the same decision. In September 2023, the Singapore Central Bank issued a nine-year prohibition order against Davies and Zhu for allegedly violating the country’s securities laws.
