The pace of developments in the cryptocurrency world continues to surprise. The latest news is about the founder of a crypto company. In a surprising development, Zhu Su, the founder of Three Arrows Capital, a cryptocurrency hedge fund that went bankrupt in 2022, was caught in Singapore. As reported by Bloomberg, the reason behind the arrest is a court order. There is a 4-month prison sentence imposed by the Singapore Court. All of this came on the heels of a tumultuous period for Su Zhu.
Failure to cooperate with liquidators led to arrest
Among the reasons for the arrest and subsequent prison sentence are the steps of the crypto company’s founder, Zhu Su. Accordingly, he refuses to cooperate with the liquidators overseeing the liquidation of Three Arrows Capital. It also stems from his willful defiance of a court order demanding accountability for his actions. Liquidator Teneo confirms these developments. Accordingly, it states that the arrest took place at the airport while Zhu Su was trying to leave Singapore.
In light of the court’s decision, Teneo liquidators will now act more freely. They will make further demands to ensure that Zhu Su fully complies with the court order. They also have the authority to petition for additional hearings. This order will force Zhu Su to provide information and documents related to the crypto fund Three Arrows Capital both during and after his detention.
Summary of crypto company Three Arrows Capital’s problems
The collapse saga of crypto company Three Arrows Capital began in late June 2022, when a court in the British Virgin Islands initiated the liquidation of the cryptocurrency hedge fund. This was followed by the fund filing for bankruptcy in early July. The collapse of Three Arrows Capital amid cryptocurrency market turbulence has had ripple effects on various cryptocurrency companies.
Three Arrows Capital had accumulated significant debt from multiple crypto lenders, including BlockFi, Celsius, Babel Finance, and Voyager Digital. Unfortunately, the fund’s financial difficulties prevent it from meeting its repayment obligations. Thus, it contributes to the broader challenges facing the cryptocurrency industry. When we look at it as Kriptokoin.com, the arrest of Zhu Su, the founder of Three Arrows Capital, draws attention. It also marks an important chapter in the fund’s troubled history. This accordingly raises questions about the regulatory environment and financial stability in the digital asset sector.
What will happen next?
For Su Zhu, the founder of the crypto fund, the next process will be more difficult than the previous one. Because now he will have to be accountable and provide the requested information. On the other hand, failure to fulfill the requests will open the door to a more difficult period for Su Zhu.
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