JUST IN: Three Arrows Capital Founder Su Zhu ARRESTED

September 29, 2023 2:59 pm Comments

Three Arrows Capital (3AC) co-founder Su Zhu was reportedly arrested by authorities on Friday.

Sources claim that Zhu was apprehended at Changi Airport in Singapore after allegedly attempting to leave the country following an arrest order for contempt of court.

The former crypto hedge fund manager and CEO will now spend a total of 4 months behind bars.ย  Crypto town hall provided a summary analysis of the situation:

Coinage added this detail: “Zhu has been sentenced to prison for four months, along with his co-founder Kyle Davies.”

According to Benzinga:

The Monetary Authority of Singapore (MAS) has enforced a rigorous nine-year ban on both Zhu and Davies, the brains behind Three Arrows Capital.

This action was taken after the pair was identified as breaching the Securities and Futures Act 2001 (SFA) and the associated Securities and Futures (Licensing and Conduct of Business) Regulations (SFR).

Many in the crypto community lauded the arrest of the Three Arrows Capital founder and saw it as a positive development.

Coin Telegraph provided background information on the collapse of Three Arrows Capital:

The investigation is related to efforts to recover funds for creditors of 3AC. The $10 billion hedge fund collapsed in 2022 following the implosion of the Terra ecosystem.

3AC had excessive leverage on long positions across some cryptocurrencies and borrowed hundreds of millions of dollars from crypto lending protocol.

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