Three Arrows co-founder Su Zhu jailed after trying to leave Singapore

Su Zhu, the co-founder of collapsed Singapore-based crypto hedge fund Three Arrows Capital, was apprehended in Singapore today, its liquidator Teneo said.

According to Teneo, Singapore Courts issued a committal order against Zu on September 25, directing police to arrest him on sight.

He was taken into custody at Changi Airport as he was attempting to leave the country.

Three Arrows Capital filed for bankruptcy in June 2022, shortly after the collapse of the Terra ecosystem. It launched in 2012 and at one point managed as much as $10 billion — just months before it failed.

Committal orders can be issued by the Singapore Courts to penalise non-compliance with court orders or judgements. The order was sought by Teneo to force the 3AC founders to cooperate in the liquidation procedure.

The court order sentenced Zhu to four months in jail.

“Liquidators will seek to engage with him on matters relating to 3AC” during that period of time, Teneo said.

A committal order was also issued against 3AC co-founder Kyle Davies, who has not been apprehended.

The Monetary Authority of Singapore has also prohibited Zhu and Davies from conducting regulated investment activities in the country for nine years.

Its founders, who met in university, recently launched a new crypto trading platform, OPNX.

The company was originally known as Coinflex, which Mark Lamb founded. Davies and Zhu relaunched it in April with the intention of letting users trade bankruptcy claims tied to failed exchanges, including FTX.

The exchange is led by Coinflex founder Mark Lamb’s wife, Leslie.

OPNX said it counted firms such as Susquehanna, MIAX, and Nascent as investors. All of them later denied having invested in the exchange.

Tom Carreras is a markets correspondent at DL News. He is based out of Costa Rica. Reach out to him at tcarreras@dlnews.com

Adam Morgan McCarthy is DL News’ London-based Markets Correspondent. Got a tip? Reach out at adam@dlnews.com.