3AC co-founder Su Zhu set to be released by year-end after court grilling: Report
Su Zhu, co-founder of bankrupt cryptocurrency lender Three Arrows Capital (3AC), is reportedly set to be released soon, after facing an extensive interrogation in a Singapore court, Bloomberg reported.
Zhu was arrested in Singapore in September 2023 when he attempted to flee the country after a local court sentenced him to four months of imprisonment. 3AC’s joint liquidator, Teneo, said at the time that Zhu was planning to assist on matters related to 3AC, and to help recover assets from the defunct firm.
According to Bloomberg’s Dec. 13 report, Zhu faced his first interrogation in Singapore this week, responding to Teneo lawyers in a two-day court hearing. Citing people familiar with the matter, Bloomberg said lawyers sought details about how the fund failed, and the whereabouts of assets. According to Bloomberg’s sources, Zhu is set to be released this month based on standard provisions for good behavior.
“The liquidators will pursue all opportunities to ensure Mr. Zhu complies in full with the court order made against him for the provision of information and documents relating to 3AC and its former investment manager during the course of his imprisonment and thereafter, and may make applications for further court orders as required,” Teneo told Cointelegraph in September.
Teneo didn’t immediately respond to Cointelegraph’s request for comment.
3AC is a Singaporean crypto hedge fund founded in 2012 by Kyle Davies and Su Zhu. The firm failed to meet margin calls from its lenders amid a crypto market sell-off in 2022 when Bitcoin (BTC) dropped below $20,000. 3AC reportedly borrowed Bitcoin from another collapsed crypto lending firm, BlockFi, but could not meet a margin call as conditions tightened along with the bear market.
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The proceedings between Zhu and Teneo’s representatives are reportedly a civil matter, as Zhu and Davies haven’t faced any criminal charges in Singapore. Davies, who remains at large, received the same committal order sentencing him to four months of imprisonment.
In September 2023, Singapore’s central bank issued nine-year prohibition orders to Davies and Zhu over alleged violations of the country’s securities laws at 3AC.
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