Su Zhu, cofounder of the now-defunct crypto hedge fund Three Arrows Capital (3AC), has been sentenced to four months in prison by a Singapore court, according to updates from Teneo, the firm's joint liquidators. Earlier today, Zhu was arrested at Changi Airport while he was attempting to depart from Singapore.
This comes after significant sanctions and a nine-year trading ban had been levied against him and his cofounder Kyle Davies by the Monetary Authority of Singapore (MAS) in September.
Committal order
Zhu was arrested after a committal order was granted by Singapore Courts, according to the Teneo statement. The order, which was obtained on Sept. 25, was a response to the cofounder's intentional noncompliance with a previous court order compelling him to cooperate with ongoing liquidation investigations and account for his activities related to 3AC.
Now that Zhu is commencing his four-month sentence, the liquidators aim to focus on asset recovery and ensuring complete compliance from Zhu in providing information and documents pertinent to 3AC and its former investment manager.
OX tumbles
The hedge fund fell from grace last year due to a glaring lack of a proper risk management framework. Significant holdings in Terra's LUNA, which were worth around $560 million at their peak, crumbled, leading to substantial losses. Post-collapse, the founders defaulted on loans and went missing, triggering legal pursuit.
Zhu's arrest made the Open Exchange token (OX), which is issued by bankruptcy claims exchange OPNX, experience a precipitous 50% price plummet. The exchange was cofounded by Zhu and Davis after the collapse of their hedge fund.
Arman Shirinyan
