The firm in charge of the liquidation of Three Arrows Capital (3AC) announced this Friday the arrest by the Singaporean police of Su Zhu, co-founder of the bankrupt investment fund. He had refused to collaborate with the authorities and was on the verge of fleeing the country.
Su Zhu arrested in Singapore
End of soap opera for Su Zhu, who has just been apprehended and placed under arrest by the Singapore police authorities. He was about to fly to an unknown destination, probably with the ambition of fleeing the country.
🔴 Su Zhu, the co-founder of the hedge fund Three Arrows Capital (#3AC), was arrested at Changi Airport in Singapore.
According to the liquidators of 3AC, Su Zhu will have to serve a 4-month prison sentence. pic.twitter.com/yLGTWeRJyg
— Cryptoast (@CryptoastMedia) September 29, 2023
The information was shared and confirmed by Teneo, the firm in charge of the liquidation of the investment fund Three Arrows Capital (3AC), of which Su Zhu was a co-founder, declared bankruptcy in June 2022.
According to information reported by our colleagues at Bloomberg, Teneo informed that this arrest took place pursuant to a committal warrant against Su Zhu. This was issued following a refusal to cooperate with the liquidators, in contravention of a court order.
Moreover, Kyle Livingston Davies, the other co-founder of 3AC, is also under threat of a similar arrest warrant. It should be noted, however, that the news of Su Zhu’s arrest has not yet been officially confirmed by the Singapore authorities.
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An arrest that would not be long overdue
Although in liquidation with a court in the British Virgin Islands, it was the High Court of Singapore which was in charge of supervising the case. Indeed, Three Arrows Capital was an entity domiciled within the city-state off the coast of Malaysia.
The latter had also taken the subject very seriously, particularly because of its reputation as a global financial center. In early September, regulators even imposed a ban on activity over several years against Zhu and Davies.
According to the Monetary Authority of Singapore (MAS), the local financial markets regulator, the two co-founders allegedly deceived the regulator with “blatant disregard for regulatory requirements”, threatening to take similar measures for any other executive engaging in such reprehensible acts.
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3AC Ventures, OPNX… Immediate impacts
Despite the bans (and incidentally debts of $3.5 billion), Kyle Davies and Su Zhu decided to relaunch themselves in the crypto ecosystem by creating OPNX, a cryptocurrency exchange. As if the irony wasn’t pronounced enough, this one is described as “a solution and a home for those harmed by crypto crises”.
In response, the price of the OX token on this Open Exchange exchange platform has just plummeted by more than 50%as evidenced by the graph below:
Price of the Open Exchange OX token over the last 24 hours
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