The Co-Founder of the collapsed crypto fund Three
Arrows Capital (3AC), Su Zhu, has faced questioning in a court in Singapore.
This investigation, as reported by Bloomberg, marks a significant step in the
search for answers by liquidators seeking to recover $3.3 billion for
creditors.
This interrogation, which was conducted for two
days, sought to unravel the mysteries surrounding the collapse of 3AC and the
whereabouts of its assets. The liquidators have accused Zhu and his Co-Founder, Kyle Davies, of obstructing investigations, aiming to recover $1.3 billion from
the duo.
Zhu’s interrogation, orchestrated by lawyers
representing the liquidator Teneo, delved into the failure of 3AC and the
loss of customers’ assets. Despite the private nature of the proceedings, the
media publication reported, citing insiders, that Zhu’s detainment in September
played an important role in these court inquiries.
Liquidators have accused Zhu and Davies of
obstructing investigations, aiming to recover a staggering $1.3 billion from
the duo. However, neither Zhu nor Davies has faced criminal charges in
Singapore. The information obtained from these inquiries is poised to be shared
with creditors.
In September, Zhu was arrested in Singapore,
culminating in the downfall of 3AC. The charges brought against him include alleged
mismanagement of customers’ funds and debt default. Before the collapse of the
crypto lender, 3AC boasted investments in high-profile projects like LUNA,
Aave, Avalanche, BlockFi, Deribit, and Solana. However, its troubles began with
the crash of LUNA in May, triggering a cascading effect within the crypto
industry.
Breaking: ZHU Su, co-founder of failed crypto hedge fund Three Arrows Capital, was apprehended at Changi Airport whilst attempting to travel out of Singapore on Friday (Sep 29) afternoon. Businesstimes reported. https://t.co/W01HoeQYCu pic.twitter.com/TwvRuFKbxw
— Wu Blockchain (@WuBlockchain) September 29, 2023
3AC’s Regulatory Setback Triggers Concerns
Despite managing $18 billion in cryptocurrency
assets at its peak, 3AC failed to meet margin calls in June, raising doubts
about its financial stability. In response to regulatory lapses tied to the
operation of the fund operations, Singapore’s financial market regulator banned the duo from participating in the city-state’s financial services sector for
nine years in September.
The Monetary Authority of Singapore affirmed that
neither Zhu, who held the position of Chief Executive,…
