Media: 3AC co-founder detained at Singapore airport

Authorities in Singapore detained the co-founder of the bankrupt hedge fund Three Arrows Capital (3AC), Su Zhu, as he attempted to leave the country, The Business Times reports.

According to the publication, this occurred on September 29 at Changi Airport. A few days earlier, Teneo, the liquidators handling 3AC, had sought to impose measures against him for ‘willful refusal’ to comply with a court order to cooperate with the investigation.

The firm said the court sentenced Su Zhu to four months in prison. Journalists reported that a similar order was issued for Kyle Davies, the other co-founder of the hedge fund. His whereabouts are unknown.

In July, Teneo indicated the possibility of approximately $1.2 billion being returned in court proceedings from Digital Currency Group and BlockFi. Prior to that, 3AC’s liquidators filed a lawsuit against Su Zhu and Kyle Davies seeking to recover $1.3 billion.

In May 2022, after the collapse of the cryptocurrency market and the Terra collapse, there were reports of possible insolvency of Three Arrows Capital.

At the end of June, the British Virgin Islands ordered the liquidation of the hedge fund. In July, 3AC filed for bankruptcy in a New York court. According to Nansen, the organization managed assets totaling about $10 billion.

In September, the Monetary Authority of Singapore banned for nine years the founders of Three Arrows Capital from engaging in regulated business activity in the country.