Three Arrows Capital Co-Founder Su Zhu to be Freed Following Court Interrogation
Summary:
Three Arrows Capital's co-founder Su Zhu is set to be released from a Singaporean prison after facing intensive questioning regarding the collapse of the cryptocurrency lending firm. Zhu was arrested in September 2023 for attempt to flee the country following a four-month imprisonment sentence. During his legal proceedings, lawyers sought information about why the fund failed and the location of its assets. The dealings between Zhu and Teneo representatives are seen as a civil matter and Zhu is expected to be released this month due to good behavior provisions.
Embattled co-founder of Three Arrows Capital (3AC), a defunct cryptocurrency lending firm, Su Zhu, is expected to be released soon after undergoing intensive questioning in a Singaporean court, according to Bloomberg. Zhu was arrested in Singapore in September 2023 as he tried to leave the country following his four-month imprisonment sentence handed down by a local court. 3AC's court-appointed liquidator, Teneo, stated that Zhu intended to cooperate on issues pertaining to 3AC and aid in retrieving assets from the liquidated company.
Bloomberg's report on December 13 highlighted that Zhu underwent his first round of interrogation in Singapore this week. Over a two-day court hearing, he answered questions from Teneo's legal team. Bloomberg's sources, who are familiar with the case, claim that the lawyers were searching for information about the fund's failure and the current location of its assets. It is expected that Zhu will be freed this month thanks to standard good behavior provisions.
Teneo emphasized that they will "pursue all opportunities to ensure Mr. Zhu fully adheres to the court order issued against him regarding the provision of information and documents related to 3AC and its former investment manager during and after his imprisonment," as they stated to Cointelegraph in September. Potential further court orders may be applied for if needed. Teneo did not immediately respond to Cointelegraph’s request for comment.
3AC, a cryptocurrency hedge fund based in Singapore, was established in 2012 by Kyle Davies and Su Zhu. It failed to honor its margin calls from lenders during a cryptocurrency market decline in 2022 when Bitcoin dropped below $20,000. 3AC apparently borrowed Bitcoin from another now-defunct crypto lending company, BlockFi. But as market conditions became more stringent with the bear market, it could not fulfill a margin call.
The dealings between Zhu and Teneo representatives are believed to be a civil matter as neither Zhu nor Davies have faced criminal charges in Singapore. Davies, still at large, was sentenced to a four-month imprisonment order like Zhu. In September 2023, Singapore's central bank handed out prohibition orders for nine years to both Davies and Zhu for alleged breaches of the nation's securities laws while at 3AC.
Published At
12/13/2023 3:20:30 PM
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