Su Zhu, the co-founder of the now-defunct cryptocurrency lender Three Arrows Capital (3AC), is anticipated to be released from prison later this month following an extensive trial held in a Singapore court.
Zhu was apprehended in Singapore in September 2023 as he attempted to leave the country. Subsequently, a local court sentenced him to four months in prison. Initially, Teneo, the joint liquidator of 3AC, stated that Zhu intended to collaborate in addressing 3AC-related matters and aid in the recovery of assets from the collapsed company.
During this week's trial in Singapore, Zhu engaged with Teneo lawyers in a two-day court hearing, addressing inquiries regarding the fund's collapse and the disposition of its assets, as reported by Bloomberg on December 13. Sources familiar with the matter informed Bloomberg that Zhu is expected to be released this month, contingent on his compliance with good behavior standards.
Teneo informed in September that they aimed to ensure Zhu adhered fully to the court orders against him, furnishing pertinent information and documents regarding 3AC and its former investment manager during and after his prison term. They also mentioned the potential pursuit of additional court orders if necessary.
Established in 2012 by Kyle Davies and Su Zhu, 3AC was a cryptocurrency hedge fund headquartered in Singapore. However, the company faced significant challenges during the 2022 cryptocurrency market downturn, failing to meet lenders' margin calls as Bitcoin plummeted below $20,000. Notably, 3AC had reportedly borrowed Bitcoin from BlockFi, another defunct cryptocurrency lending firm, but couldn't fulfill margin calls due to the bearish market conditions.
Reportedly, the legal conflict between Zhu and Teneo's representatives is categorized as a civil matter, as neither Zhu nor Davis face criminal charges in Singapore. Kyle Davies, currently at large, received a similar detention order imposing a four-month prison sentence. In September 2023, Singapore's central bank imposed a nine-year ban on Davis and Zhu over alleged violations of the country's securities laws by 3AC.
