Breaking: 3AC founder Su Zhu arrested in Singapore; sentenced to prison for four months
- The founder of Three Arrows Capital, also known as 3AC, Su Zhu, has been arrested in Singapore following a committal order.
- Zhu has been imprisoned for four months, and a similar sentence is issued for 3AC co-founder Kyle Davies, whose location is unknown.
- Earlier this year, Zhu and Davies launched their crypto exchange named Open Exchange, announcing a native token, FLEX, as well.
Su Zhu, the founder of the bankrupt cryptocurrency hedge fund Three Arrows Capital (3AC), has reportedly been arrested in Singapore at the Changi airport. As confirmed by Teneo 3AC’s joint liquidator, Zhu was apprehended for attempting to travel out of Singapore following a committal order granted by the court.
The order was issued following Su Zhu’s deliberate failure to comply with a court order that mandated him to cooperate with the liquidator's investigations.
3AC founder arrested
As per reports, Zhu will now be held in prison for the next four months, serving his sentence issued under the committal orders. Akin to Zhu, another committal order that sentences the co-founder of 3AC, Kyle Davies, to prison for four months has also been granted. His whereabouts at the time of writing remain unknown, though.
3AC founder Su Zhu arrested
Three Arrows Capital was among the first major crypto firms to witness the brunt of the bear market when it went bankrupt back in Q2 2022. The collapse of the hedge fund thus began the first crypto contagion of the year, which took down other companies, including the likes of Celsius Network and Voyager Digital.
The arrest and imprisonment would mark the first instance where any real legal action against the founders has been taken. The lack of their whereabouts led them even to launch their own crypto exchange earlier this year. Titled Open Exchange, Su Zhu and Kyle Davies launched the exchange as a marketplace for claims trading and derivatives. Along with the exchange, a native token called FLEX was announced as well.
Read more - Bankrupt 3AC founders Kyle Davies and Zhu Su launch new exchange for crypto claims trading
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Author
Aaryamann Shrivastava
FXStreet
Aaryamann Shrivastava is a Cryptocurrency journalist and market analyst with over 1,000 articles under his name. Graduated with an Honours in Journalism, he has been part of the crypto industry for more than a year now.
