Co-founder of bankrupt crypto fund Three Arrows Capital detained in Singapore
The co-founder of the bankrupt cryptocurrency fund Three Arrows Capital, Zhu Zhu, has been apprehended in Singapore. Su Joo was arrested at the airport while attempting to leave the country. This action was taken at the request of the company responsible for liquidating the insolvent fund.
Teneo, the entity overseeing the liquidation of 3AC, reported that they secured a restraining order against Zhu Zhu after he failed to comply with a court directive to cooperate with investigators as part of the fund's winding-up process. According to the remand order, Zhu Zhu has been sentenced to four months in prison.
The Singapore-listed cryptocurrency hedge fund, Three Arrows Capital (3AC), filed for bankruptcy in July 2022 due to the significant market downturn, which rendered it unable to meet its creditors' demands. As early as 2021, the fund managed $10 billion in assets, but by April 2022, that figure had plummeted to $3 billion and continued to decrease until bankruptcy was declared. Zhu's partner in the fund was Kyle Davis, who is believed to be in Bali.
As part of the liquidation procedure, Teneo is liquidating the fund's available assets, including a collection of NFTs, many of which were acquired at peak 2021 prices during the frenzy surrounding non-fungible tokens. In June, one NFT from 3AC's collection sold at a Sotheby's auction for $6.2 million.