Co-founder of collapsed crypto fund arrested and jailed in Singapore
Su Zhu was taken into custody at Changi Airport in Singapore while attempting to leave the city-state
One of the co-founders of the now-defunct cryptocurrency hedge fund, Three Arrows Capital, has been detained in Singapore and sentenced to four months in jail, as confirmed by the company's liquidator.
Last year, the Singapore-based firm filed for bankruptcy following a substantial drop in its fortunes due to a significant sell-off of assets it had invested in, coinciding with a cryptocurrency market downturn.
Su Zhu was taken into custody at Changi Airport in Singapore while attempting to leave the city-state, according to a statement released late Friday by Three Arrows' liquidator, Teneo.
Zhu's arrest followed the issuance of a committal order against him earlier in the week for non-compliance with Teneo's investigation into the company's collapse. "The committal order granted by the Singapore Courts sentenced Mr. Zhu to 4 months' imprisonment," Teneo stated.
His co-founder, Kyle Davies, was also sentenced to four months in prison, but Teneo noted that "his whereabouts remain unknown at this point in time."
Singapore's monetary authority had previously banned both individuals "from conducting regulated investment activity for nine years each," according to Teneo.
The liquidator, appointed by a court in the British Virgin Islands to oversee the bankruptcy, is striving to recover Three Arrows' assets and provide returns to its creditors after the company's failure. However, it has accused Zhu and Davies of failing to cooperate with efforts to return funds and not voluntarily supplying information.
In a June profile featured in The New York Times, the co-founders revealed they had been traveling since the hedge fund's collapse, with trips including a visit to the Indonesian resort island of Bali, where they engaged in activities such as surfing and meditation.
Singaporean police have not responded to requests for comment at this time.