3AC’s Su Zhu To Be Released; Faces Questions on Fund’s Collapse

• Three Arrows Capital co-founder Su Zhu is set for release for good behavior. 
• Zhu faced questioning in a two-day hearing in a Singapore court, addressing the collapse of the crypto hedge fund.
• The legal proceedings between Zhu and the liquidator’s representatives are characterized as a civil matter.

Co-founder Su Zhu of bankrupt hedge fund Three Arrows Capital is reportedly expected to be released this month based on standard provisions for good behavior.

As reported by Bloomberg, Zhu faced questioning in a Singapore court about the fund’s collapse in a two-day court for the first time. The hearing required Zhu to respond to lawyers for Teneo, the liquidator for the bankrupt crypto hedge fund. 

The court session aimed to gather crucial details about the fund’s failure and the location of its assets. According to Bloomberg, this inquiry provides the liquidators with their “best chance yet to gather information as they seek to recoup billions of dollars for creditors.”

Zhu was arrested on September 29 at Singapore Changi Airport while attempting to leave the country following the Singapore Court’s committal order. Bloomberg stated that Zhu was jailed for four months but is set to be released on standard provisions for good behavior. 

Furthermore, Bloomberg added that the proceedings between Zhu and Teneo’s representatives were a civil matter as the founder hasn’t faced any criminal charges in Singapore. People familiar with the matter claimed that details obtained from the questions in court would be shared with creditors to maximize recoveries. 

In a related development, Kyle Davies, a co-founder of the hedge fund alongside Zhu, faced penalties from Dubai authorities in August for their crypto firm, OPNX. Reports revealed that Davies and Zhu failed to settle outstanding penalties, resulting in a $54,451 fine.