3AC Co-Founder Su Zhu Arrested at Singapore Airport: Report

• The Three Arrows Capital co-founder Su Zhu was arrested at Singapore Changi Airport whereas making an attempt to depart the nation.
• The Singapore Courtroom launched committal orders to 3AC co-founders Zhu and Davies for not complying with the liquidation investigation.
• Liquidator Teneo alleges the co-founders of not cooperating with the liquidators’ endeavor for asset restoration.

Su Zhu, the co-founder of the bankrupt crypto hedge fund Three Arrows Capital, was reportedly arrested at Singapore Changi Airport whereas making an attempt to depart the nation following the Singapore Courtroom’s committal order. As per the corporate’s liquidator, Teneo, the court docket issued committal orders for each Zhu and 3AC’s different co-founder, Kyle Davies, revealing the court docket’s determination to condemn each to 4 months of imprisonment for not complying with the investigation on liquidation.

In July 2022, following the extreme crypto winter, 3AC collapsed, falling into liquidation. Consequently, whereas liquidators had been making an attempt to get better greater than $1 billion from the corporate, 3AC filed for Chapter 15 chapter safety within the U.S. Chapter Courtroom for the Southern District of New York, in search of authorized help to handle collectors.

A subsequent report revealed that the liquidators alleged 3AC co-founders of not cooperating with asset restoration and failing to reimburse buyer funds. Adam Goldberg, an legal professional representing liquidators, asserted that Zhu and Davies are extra indulged in sustaining the corporate’s repute than selling asset restoration.

Per the liquidator’s allegations, the corporate co-founders had been concerned in an extended tussle with Teneo, the general public relations firm. The agency added that their lively participation in social media networks was contradicting their lack of cooperation with the liquidators, citing,

Kyle Livingstone Davies and Su Zhu (collectively, the ‘Founders’) — each of whom have maintained a very lively social media presence within the wake of the failure of their firm — have failed to supply forthright cooperation. All of the whereas, Mr. Davies has continued to submit on his Twitter account, brazenly ignoring the Courtroom’s directives and having fun with media consideration whereas he continues to thwart efforts by [liquidators] to achieve entry to paperwork and data.

Declaring the liquidators’ urgency in recovering funds, Teneo acknowledged that that they had requested the court docket to subject the committal order compelling 3AC’s co-founders to stick to the liquidators’ necessities. As per their plan, the liquidators would interact with Zhu and Davies throughout their confinement, in search of their cooperation for additional restoration procedures. Teneo added, “All through the method, the liquidators’ precedence has been recovering the belongings of 3AC and maximising returns for its collectors”.