Three Arrows Capital’s Su Zhu reportedly near release following good behavior in custody Three Arrows Capital’s Su Zhu reportedly near release following good behavior in custody
3AC lqiuidators Teneo's lawyers reportedly questioned Zhu about the collapse of the crypto hedge fund.
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Updated: Dec. 13, 2023 at 2:43 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Su Zhu, co-founder of the now-defunct crypto hedge fund Three Arrows Capital (3AC), is slated for release later this month after spending several months in custody, Bloomberg reported on Dec. 13.
In September, Zhu got a four-month jail sentence due to non-cooperation in the liquidation process of the collapsed firm. As per the Bloomberg report, Zhu’s release is attributed to demonstrating good behavior during the period of custody.
3AC liquidators question Zhu
This development coincides with Zhu’s recent appearance in a Singaporean court, where lawyers from Teneo, the appointed liquidator for 3AC, questioned him on the reasons behind the firm’s failure and the whereabouts of its assets.
Teneo wants to reclaim $1.3 billion from Zhu and his partner, Kyle Davies, who is also wanted by the Singaporean authorities. Notably, the court-appointed liquidators have previously accused the co-founders of the bankrupt firm of being uncooperative and providing “selective and piecemeal disclosures” about the bankrupt hedge fund assets.
Last year, 3AC was one of the several crypto firms, including FTX and Celsius, that collapsed following a significant market downturn.
The hedge fund had held a prominent position in the industry and had substantial investment stakes in projects such as LUNA, Aave, Avalanche, BlockFi, Deribit, and Solana. The firm managed around $18 billion of digital assets at its peak.
The company’s downfall resulted from inadequate risk management protocols and imprudent transactions driven by excessive greed.
Following the collapse, Singaporean authorities banned Zhu and Davies for nine years because they violated the country’s Securities and Futures Act 2001 (SFA) and Securities and Futures (Licensing and Conduct of Business) Regulations (SFR). Additionally, the regulator stated that 3AC had failed to inform it about the appointment of Cheong Jun Yoong Arthur as its portfolio manager and had misrepresented his employment status.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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In this article
Solana
$194.154
Solana is a high-performance blockchain platform that utilizes a unique consensus algorithm called “Proof of History” to achieve fast transaction speeds and low fees.
Terra Classic
$0.00011
Terra is a blockchain protocol that uses fiat-pegged stablecoins to power price-stable global payments systems.
Aave
$330.654
Aave is an open source and non-custodial protocol enabling the creation of money markets.
Three Arrows Capital
Three Arrows Capital (3AC), a Singapore-based crypto hedge fund, collapsed due to poor risk management, recklessness in dealing with business partners and a significant portion of greed.
FTX
FTX is a defunct cryptocurrency exchange, currently in bankruptcy proceedings, that was founded by Sam Bankman-Fried and Zixiao “Gary” Wang in May 2019.
Celsius Network
Celsius Network is a bankrupt cryptocurrency lending company that was founded in 2017 and headquartered in Hoboken, New Jersey.
Kyle Davies is an entrepreneur and businessman based in Singapore who co-founded Three Arrows Capital (3AC), a bankrupt cryptocurrency hedge fund.
