Bankrupt Crypto Hedge Fund 3AC's Su Zhu Apprehended in Singapore, Liquidator Says

Co-founder of the Three Arrows Capital hedge fund was seized at Changi airport, Teneo said

AccessTimeIconSep 29, 2023 at 2:21 p.m. UTC
Updated Sep 29, 2023 at 2:43 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Su Zhu, co-founder of hedge fund Three Arrows Capital, was apprehended at Changi airport in Singapore on Friday, according to the company's liquidator Teneo.

The hedge fund collapsed in 2022, and interconnections within the industry meant the impact of its collapse quickly brought on a new crypto winter.

Zhu, alongside co-founder Kyle Davies, was the subject of a committal order sentencing him to four months' imprisonment due to failure to comply with a court order.

Davies' whereabouts remain unknown, the statement added.

Earlier in September, the Monetary Authority of Singapore banned Zhu and Davies from owning or running any registered capital markets firm for nine years.

In May, the pair were also reprimanded by Dubai's crypto regulator for operating their new venture, a bankruptcy exchange called OPNX, as an unregulated exchange. Davies has also declined to respond to subpoenas relating to 3AC's collapse issued by a New York court.

The native token of the duo's new project fell by 21% as its market cap shrank to $40 million.

Oliver Knight contributed to the reporting of the story

UPDATE (Sept. 29, 14:40 UTC): Updates to add more context and price action of OX token.

Edited by Aoyon Ashraf.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.

Jack Schickler

Jack Schickler was a CoinDesk reporter focused on crypto regulations, based in Brussels, Belgium. He doesn’t own any crypto.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.