In a recent two-day court hearing in Singapore, Su Zhu, the co-founder of Three Arrows Capital, faced questioning over the collapse of the crypto fund.
Liquidators were reportedly able to gather vital information in their pursuit of recovering billions of dollars for creditors.
3AC Co-Founder Su Zhu Questioned in Singapore Court
According to a recent Bloomberg report, Zhu, who co-founded the Three Arrows Capital with Kyle Davies, was questioned by lawyers from Teneo, the appointed liquidator.
The queries aimed to uncover details about the fund’s failure and the current whereabouts of its assets.
Zhu’s questioning was approved after his arrest on September 29 at the Singapore airport.
According to the report, he was held for four months due to non-cooperation with the winding-up process. However, he is expected to be released this month.
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During the court appearance, Zhu reportedly acknowledged the impending questioning. However, neither his legal representative nor the court reportedly provided comments.
Three Arrows Capital collapsed in 2022, contributing to a $2 trillion crypto market downturn.
Liquidators allege that Zhu and Davies failed to cooperate adequately with the investigation. Furthermore, they are seeking to recover $1.3 billion from them.
Teneo approximates the total owed to creditors to be around $3.3 billion.
3AC Experienced a Significant Downfall
The ongoing proceedings between 3AC co-founder Zhu and Teneo in the Singapore court are a civil matter. Additionally, neither Zhu nor Davies currently faces criminal charges in Singapore.
However, Zhu asserted that they encountered resistance in their efforts to cooperate with liquidators. Correspondence submitted to a New York bankruptcy court by the liquidators suggests that they regard the court orders they obtained as “baseless.”
Three Arrows, once regarded as one of the largest and most successful crypto hedge funds, shifted its registration to the British Virgin Islands after operating from Singapore.
Meanwhile, in June of last year, a British Virgin Islands court appointed Teneo to carry out the liquidation of the fund’s assets.
Zhu and Davies faced regulatory action from Singapore’s central bank in September. This imposed nine-year prohibition orders on both individuals for risk management failings and providing false information.
However, liquidators are reportedly actively working with global authorities to locate Davies, who remains elusive.
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