- Su Zhu, co-founder of collapsed crypto fund Three Arrows Capital, faced questioning in a Singapore court over the fund’s collapse. Lawyers for the fund’s liquidator, Teneo, sought details on how the fund failed and the whereabouts of assets.
- Zhu was arrested in Singapore for failing to cooperate with the winding-up process and spent four months in jail. Teneo is seeking to recover $1.3 billion from Zhu and co-founder Kyle Davies, who have been accused of failing to cooperate meaningfully with the probe.
- Three Arrows Capital was viewed as one of the largest and most successful crypto hedge funds before its collapse. Authorities around the world are being contacted by Teneo in their effort to locate Davies.
Su Zhu, co-founder of the once-towering crypto hedge fund Three Arrows Capital, faced a fiery interrogation in a Singapore court on Wednesday, marking a key turning point in the quest to recover billions for creditors. Lawyers for the fund’s liquidator, Teneo, relentlessly pursued details about the fund’s spectacular implosion and the whereabouts of its vanished assets. The atmosphere crackled with tension as Zhu, sporting a sharp suit and a noticeably shorter haircut, parried their questions.
From Crypto Darling to Debtor
Crypto giant Three Arrows soared high then crashed hard in 2022, its risky bets blowing up and leaving a $3 billion debt mess. Once basking in the limelight, its founders are now cautionary tales in the ever-changing crypto world.
Singapore Cracks Down: Bans, Jail Time, and the Hunt for Davies
Singapore’s authorities haven’t been shy about holding Three Arrows accountable. Zhu and his co-founder, Kyle Davies, were slapped with nine-year bans from the city-state’s financial scene for their reckless risk management and penchant for misleading information. While Zhu faced the court’s music, Davies remained the elusive ghost in the machine, his whereabouts a closely guarded secret despite liquidators and Interpol hot on his heels.
As the dust settles from the court hearing, many questions still linger. Will Teneo succeed in piecing together the puzzle of the Three Arrows’ demise and recouping the missing billions? Can Davies be brought to justice? And what lasting scars will this saga leave on the ever-evolving landscape of the crypto industry? Only time will tell, but one thing is certain: the saga of Three Arrows Capital is far from over.