SINGAPORE: One of many co-founders of collapsed cryptocurrency hedge fund Three Arrows Capital has been apprehended in Singapore and jailed for 4 months, based on the corporate’s liquidator.
The Singapore-based firm filed for chapter final 12 months when its fortunes suffered a pointy decline after an enormous sell-off of property it had wager on as costs nosedived in crypto markets.
Su Zhu was detained at Changi Airport whereas making an attempt to depart the nation, Three Arrows’ liquidator Teneo mentioned in a press release late Friday (Sep 29).
His arrest got here after Teneo mentioned it obtained a committal order this week in opposition to Zhu for failing to adjust to its investigation into the corporate’s failure.
“The committal order granted by the Singapore Courts sentenced Mr Zhu to 4 months’ imprisonment,” Teneo mentioned.
His co-founder Kyle Davies was additionally dedicated to 4 months in jail however “his whereabouts stay unknown at this time limit”, it mentioned.
The Financial Authority of Singapore (MAS) had banned the pair “from conducting regulated investment activity for nine years each”, Teneo mentioned.
The liquidator, ordered to preside over the chapter by a court docket within the British Virgin Islands, is trying to get better the property of Three Arrows and produce returns to its collectors after the corporate failed.
Nonetheless, it has accused Zhu and Davies of not cooperating with the trouble to return funds and failing to voluntarily present data.
In a profile in The New York Instances in June, the pair mentioned they’d been travelling because the hedge fund’s collapse, together with to the Indonesian resort island of Bali the place they’d been browsing and meditating.
CNA has contacted the Singapore Police Pressure and Immigrations and Checkpoints Authority for remark.