In a recent court hearing in Singapore, Su Zhu, co-founder of Three Arrows Capital (3AC), faced questioning regarding the collapse of the crypto fund. The liquidators, Teneo, sought details on the fund’s failure and the location of assets in their efforts to recover billions of dollars owed to creditors.
Zhu’s arrest at the Singapore airport in September 2023 led to the court hearing, which lasted for two days. He had previously been jailed for four months for non-cooperation in winding up Three Arrows Capital. Zhu is expected to be released this month under standard good behavior provisions.
No criminal charges have been brought against Zhu or his co-founder, Kyle Davies, in Singapore. The information obtained from the court questioning will be shared with creditors to maximize potential recoveries.
The collapse of Three Arrows Capital in 2022 had significant consequences, contributing to a $2 trillion crypto market downturn and triggering other collapses within the sector. The liquidators are seeking recovery of $1.3 billion from Zhu and Davies, with creditors owed approximately $3.3 billion in total.
In mid-September, Singapore’s central bank imposed nine-year prohibition orders on Zhu and Davies due to risk management failings and the provision of false information related to their activities at Three Arrows. The fund had shifted its registration to the British Virgin Islands and liquidators are collaborating with authorities worldwide to locate Davies.
The court hearing provides a crucial opportunity for liquidators to gather valuable information about the collapse of Three Arrows Capital and work towards recovering the owed billions. The focus remains on maximizing potential recoveries for the creditors.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Asia |
| Countries | 🇸🇬 🇻🇬 |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Kyle Davies, Su Zhu |
| Companies | British Virgin Islands court, Singapore’s central bank, Teneo, Three Arrows Capital |
| Currencies | None |
| Securities | None |
