Posted: September 29, 2023

• 3AC founder Su Zhu has been arrested by the Singapore authorities
• The founder along with his partner Kyle Davies has been sentenced to 4 months of prison time

Su Zhu, co-founder of Three Arrows Capital (3AC), was arrested by Singapore authorities while attempting to leave the country. According to Teneo, the joint liquidators of 3AC confirmed the news, stating that the arrest took place at Changi Airport. The arrest followed a committal order against him, granted by the Singaporean courts.

The post further said that the “joint liquidators had applied for and obtained the committal order against Mr Zhu on 25 September 2023”. It also stated that Zhu’s “deliberate failure to comply with a court order” prompted the filing of the committal order. The court order in highlight pushed the co-founder to “cooperate with the liquidators’ investigations. It also stated to account for his activities as one of the founders of 3AC”.

The crypto hedge fund was among the first bigwigs to collapse in the market, with a bankruptcy filing in July 2022. Its downfall was, in turn, triggered by the collapse of the Terra network and its two cryptos – LUNA and UST. Before its collapse, the company was managing nearly $10 billion in assets, but the fall of Terra erased a majority of these numbers. Moreover, this incident had a ripple effect on other crypto firms in the market, triggering a bankruptcy era with customers losing most of their money.

Prison time for 3AC founders

The recent action has resulted in a four-month prison sentence for Zhu. Notably, this current situation also applies to Kyle Levingston Davies, the other co-founder of 3AC. However, the whereabouts of Davies currently remain unknown. Teneo’s press release, posted by db,