Su Zhu, co-founder of the crypto hedge fund Three Arrows Capital (3AC), is set to be released from custody after spending several months behind bars. Zhu had received a four-month jail sentence for non-cooperation in the liquidation process of the collapsed firm. However, his release is now attributed to his good behavior during his time in custody.
During a recent court appearance in Singapore, Zhu was questioned by lawyers from Teneo, the appointed liquidator for 3AC. Teneo is seeking to reclaim $1.3 billion from Zhu and his partner, Kyle Davies, who is also wanted by Singaporean authorities. The liquidators have accused the co-founders of being uncooperative and providing incomplete information about the bankrupt hedge fund’s assets.
Last year, 3AC, along with other crypto firms like FTX and Celsius, faced collapse due to a significant market downturn. At its peak, 3AC managed around $18 billion of digital assets and held substantial investment stakes in various projects. The downfall of the company was attributed to inadequate risk management protocols and imprudent transactions driven by excessive greed.
As a result of their actions, Zhu and Davies have been banned by Singaporean authorities for nine years for violating the country’s Securities and Futures Act and Securities and Futures Regulations. Additionally, the regulator found that 3AC had failed to inform them about the appointment of a portfolio manager and had misrepresented his employment status.
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, Cheong Jun Yoong Arthur |
| Companies | Aave, Celsius, FTX, BlockFi, LUNA, Solana, Avalanche, Deribit |
| Currencies | Aave, Terra Luna Classic, deribit, Solana, Avalanche, Blockasset |
| Securities | None |
