On 29 September 2023, Su Zhu, founder of the failed Three Arrows Capital (3AC), was arrested in Singapore while trying to leave the country through Changi Airport.
Su Zhu, founder of the bankrupt crypto venture capital Three Arrows Capital (3AC) in July 2022, was arrested in Singapore at the airport while trying to leave the country. 3AC had filed for bankruptcy following the collapse of the Terra network and its two cryptocurrencies, LUNA and UST.
Prior to the bankruptcy, 3AC managed nearly $10 billion in assets. The collapse of the Terra network resulted in the loss of most of these sums. The bankruptcy of 3AC was one of the most significant events in the cryptocurrency market, with serious repercussions for its customers and also its founders.
The legal actions against Zhu and Davies
The court orders required Zhu to cooperate with the liquidators’ investigation and to account for his activities as one of 3AC’s founders. Zhu’s refusal to comply with this order led to his arrest. In parallel, Kyle Levingston Davies, the other co-founder of 3AC, is currently in jail.
The Monetary Authority of Singapore (MAS) has previously issued an order to prevent the founders of 3AC from starting or participating in any regulated business. This restriction has a duration of nine years. In addition, MAS alleged that Davies and Zhu had violated the Securities Act.
