One of the co-founders of bankrupt crypto hedge fund Three Arrows Capital (3AC) has reportedly been arrested at an airport in Singapore.
According to a new report from The Business Times, 3AC co-founder Su Zhu has been detained at Changi Airport while trying to leave Singapore.
Zhu was given a four-month prison sentence for contempt of court.
Teneo, the joint administrator of 3AC, tells The Business Times that Zhu has been sentenced by a court to four months in prison for his “deliberate non-compliance” with an order asking him to cooperate with the company’s liquidation investigation.
The report says Zhu had to answer for his activities as co-founder of 3AC, as well as the actions of the former investment manager.
A similar order and sentence has been imposed on Kyle Davies, the other founder of 3AC, but according to the report his whereabouts are currently unknown.
Teneo says that during Zhu’s sentence, they plan to talk to him about matters relating to 3AC – with a focus on recovering money in the form of assets or property from the company.
As Teneo tells The Business Times:
“Throughout the process, the administrators’ priority has been to recover 3AC’s assets and maximize returns for its creditors.”
Earlier this month, the Monetary Authority of Singapore (MAS) banned Davies and Zhu for nine years for breaching the Securities and Futures Act 2001.
According to the MAS, the duo will be barred from “carrying out any regulated activity and from participating in the management of, acting as a director of or becoming a substantial shareholder of a capital market services provider.”
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Featured image: Shutterstock/Alberto Andrei Rosu