Three Arrow Capital's Su Zhu Arrested; JPEX Fraud Investigation Seizes $2.8M; Bitcoin ETF Decisions Delayed
Summary:
Three Arrow Capital's co-founder Su Zhu has been arrested in Singapore for allegedly attempting to flee and is set to serve a prison sentence. Simultaneously, in Hong Kong and Macau, authorities have made multiple arrests and seized over $2.8 million as part of the JPEX fraud investigation. In the U.S., the Securities and Exchange Commission has deferred its decisions on four spot Bitcoin ETF filings due to an upcoming government shutdown.
Su Zhu, the co-founder of Three Arrow Capital, has been arrested in Singapore where he is set to face a four-month sentence. Recent cases of fraud have also seen several suspects arrested in Hong Kong and Macau, with over $2.8 million seized in the JPEX fraud investigation. Meanwhile, in the U.S., the Securities and Exchange Commission has postponed its decision on no less than four spot Bitcoin ETF filings.
Su Zhu, of Three Arrow Capital, was arrested on September 29 for allegedly trying to abandon Singapore illegally, according to a statement from Teneo, the official liquidator for Three Arrow Capital. His arrest has not caused widespread concern within the cryptocurrency community, with many believing these detentions will ultimately serve the crypto market well by eliminating wrongdoers.
The other co-founder of the firm, Kyle Davies, has seemingly received a similar warrant to Su Zhu, which suggests Davies may also soon be under arrest.
The ongoing JPEX fraud case has led to several significant arrests in Hong Kong and Macau. Two men from Hong Kong implicated in the case were recently detained for allegedly laundering illegal funds through Macau-based casino accounts. Alongside their arrest, over $1.7 million in assets were seized. In a separate development, two more individuals were arrested and found attempting to destroy potential evidence. So far, 18 individuals have been detained in connection with this case, with the authorities seizing further assets worth $1.1 million.
The fallout from the JPEX scandal has reverberated widely in Hong Kong, with the case now regarded as among the largest fraud cases in the city. Over 2,300 victims have filed complaints, with total losses estimated at approximately $178 million. In light of this, Hong Kong's Secretary for Security, Chris Tang Ping-keung, has vowed to bring those responsible to justice.
In other developments, the U.S. Securities and Exchange Commission has postponed decisions on several spot Bitcoin exchange-traded fund applications, including those from BlackRock, Invesco, Bitwise, and Valkyrie, due to an imminent government shutdown. Further delays are anticipated for applications from Fidelity, VanEck and WidsomTree. These delays arrived two weeks prior to the expected secondary deadline that many applicants had originally factored in.
The information provided here should not be considered as investment advice or recommendations. Investing and trading involve risk, and individuals should undertake their own research before making any decisions.
Published At
9/29/2023 7:52:08 PM
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