Su Zhu, co-founder of Three Arrows Capital (3AC), was detained in Singapore while attempting to leave the country, according to Teneo, the co-liquidator of the bankrupt hedge fund. Teneo issued a statement announcing that Zhu was arrested at Changi Airport after a detention order was issued by a Singaporean court. This detention order was related to his failure to comply with court orders regarding efforts to recover funds for 3AC's creditors.
The collapse of the $10 billion hedge fund occurred in 2022 amid the Terra ecosystem's collapse. 3AC had overleveraged long positions in certain cryptocurrencies and had borrowed hundreds of millions of dollars from crypto lending protocols. Despite the company's failure, co-founders Zhu and Kyle Davis had been evading liquidators while remaining active on social media.
The Singaporean court issued a four-month detention order for Zhu, during which the liquidators intend to engage with him regarding 3AC and the recovery of assets related to the company. Meanwhile, Davis's whereabouts remain unknown. Both Zhu and Davis were banned by the Monetary Authority of Singapore from engaging in regulated investment activities for a period of nine years each.
