Three Arrows Capital Co-Founder Su Zhu Calls Jail Term a Positive Experience Amid Ongoing Recovery Attempts
Summary:
Three Arrows Capital's co-founder, Su Zhu, recounts his nearly three-month prison term in Singapore as an unexpectedly positive experience. This comes after his refusal to cooperate with an investigation into the failed hedge fund, which resulted in investor losses exceeding $3.5 billion. Despite ongoing recovery attempts by liquidators, Zhu remains active online and has recently launched a new cryptocurrency exchange.
Three Arrows Capital's co-founder, Su Zhu, has stated that his almost three-month jail term in Singapore turned out to be an invigorating experience. He conveyed this in a tweet dated 22nd January, sharing snippets from an upcoming podcast featuring his experiences in prison. The podcast also spotlights his Three Arrows Capital co-founder, Kyle Davies, a social media manager known as "Lukas", and another undisclosed guest.
Zhu expressed that despite nobody desiring prison, he found it to be a relatively gratifying experience. The activities inmates were allowed to partake in, reminded him of ancient forms of entertainment. Zhu went on to talk about the lack of beds in Singapore jail cells, leading him to sleep on the floor which he humorously said led to the "best sleep" he had ever had.
His unconventional insights received a range of responses on social networks. One listener, Laurence Day, likened Zhu's prison insight as a person being "terminally online" seeking kinship through radical means, since ordinary ones like strolling on a beach weren't enough. Su Zhu was arrested in September the previous year while attempting to flee Singapore after receiving his sentence. This followed his refusal to cooperate in investigating the liquidation of Three Arrows Capital.
The fallen hedge fund firm met its end in June 2022. Unable to comply with a string of margin calls from its lenders, the event led to investor losses amounting over $3.5 billion. Once the firm folded, Zhu and Davies became elusive, their locations unknown. This led to Teneo, the firm tasked with liquidating the hedge fund's assets, to subpoena the founders via Twitter messages. The duo, despite their issues, have remained active online, with the establishment of a new cryptocurrency exchange and bankruptcy claims platform, Open Exchange.
The firm's problems seem far from resolved as Teneo continues to seek a recovery of $1.3 billion directly from the founders. They allege that Zhu and Davies took on huge amounts of leverage with investor funds subsequent to their hedge fund becoming insolvent. In 2023, the central bank of Singapore instigated a nine-year prohibition order on Davies and Zhu for alleged infringements of the country's securities laws while at Three Arrows Capital.
Published At
1/23/2024 7:29:59 AM
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