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HomeNewsThree Arrows Capital's Su Zhu to be Released Amid Ongoing Liquidation Inquiry

Three Arrows Capital’s Su Zhu to be Released Amid Ongoing Liquidation Inquiry

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  • Su Zhu, co-founder of bankrupt crypto hedge fund Three Arrows Capital, faces a court hearing in Singapore and is scheduled for release after four months in jail for non-cooperation.
  • Liquidators seek to recover $1.3 billion from Zhu, with total creditors’ claims estimated at $3.3 billion.

Su Zhu’s Legal Ordeal in Singapore

Su Zhu, the embattled co-founder of the now-defunct crypto hedge fund Three Arrows Capital (3AC), is undergoing a pivotal court hearing in Singapore. Zhu’s appearance in court marks his first questioning about the collapse of 3AC, giving liquidators an opportunity to gather crucial information for recouping billions in lost funds.

The Collapse and Consequences

3AC, once a prominent player in the crypto hedge fund space, witnessed a dramatic downfall in 2022 amidst a leveraged bets debacle, contributing significantly to the $2 trillion downturn in the cryptocurrency market. This crash set off a domino effect, leading to multiple collapses across the sector. The liquidators, appointed by a British Virgin Islands court, aim to recover substantial sums from Zhu and his co-founder, Kyle Davies. Teneo, the liquidator firm, is seeking approximately $1.3 billion from Zhu and Davies, with total claims by creditors estimated to be around $3.3 billion.

Zhu’s Imminent Release and Cooperation with Liquidators

After his arrest in Singapore on September 29, Zhu was jailed for four months due to non-cooperation with the liquidation process. His scheduled release this month comes at a critical juncture in the liquidation proceedings. Despite Zhu’s claims of attempts to cooperate, liquidators have accused him and Davies of not providing sufficient cooperation in the investigation.

This dispute was evident in the correspondence submitted to a New York bankruptcy court, where the counsel to Davies and Zhu criticized the court orders obtained by the liquidators as

“baseless.”

Civil Matter and No Criminal Charges

The interactions between Zhu and Teneo’s representatives in court are categorized as a civil matter. To date, neither Zhu nor Davies have faced criminal charges in Singapore. Information from the court proceedings is expected to be disclosed to creditors, aiming to maximize recoveries.

A Complex Liquidation Saga

The case of Su Zhu and Three Arrows Capital is a stark reminder of the volatility and risks inherent in the cryptocurrency market. As Zhu nears his release, the ongoing legal proceedings and efforts to liquidate assets underscore the complexities faced by liquidators in unraveling the intricate web of transactions and holdings of a once-prominent crypto hedge fund. This saga continues to unfold, highlighting the importance of transparency and accountability in the cryptocurrency industry.

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Nikita Dmitrievich
Nikita Dmitrievichhttps://www.ethnews.com/
Nikita, a young and ambitious crypto investor who has been actively involved in the cryptocurrency world for the past 6 years. With a keen interest in blockchain technology, Nikita has been investing in various cryptocurrencies and has seen significant returns on his investments. He is passionate about educating others on the potential of cryptocurrencies and frequently shares his insights on social media platforms. Nikita believes that cryptocurrencies are the future of finance and is constantly researching new projects to invest in. With his dedication and knowledge, Nikita is quickly becoming a prominent figure in the crypto community. Business Email: info@ethnews.com Phone: +49 160 92211628
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