Three Arrows Capital co-founder Su Zhu faced intensive questioning this week in a Singapore court as liquidators pressed him for information that could help retrieve some of the $3.5 billion owed to the collapsed crypto hedge fund’s creditors.
Zhu was jailed in September after failing to cooperate with liquidation efforts. But he now appears close to release while still subject to civil proceedings
- Su Zhu was arrested in September for not cooperating with Three Arrows Capital liquidation efforts
- He faces questioning this week in a Singapore court as liquidators seek information to recover $3.5B for creditors
- The court proceedings are civil matters, Zhu hasn’t faced criminal charges
- Zhu is expected to be released from his 4-month jail sentence this month for good behavior
- Liquidators had been seeking $1.3B directly from Zhu and 3AC co-founder Kyle Davies
Over two days in court, Zhu was compelled to provide details on the causes of Three Arrows Capital’s implosion and the location of any remaining assets, according to a Bloomberg report. The private proceedings were led by liquidator Teneo on behalf of creditors who suffered massive losses when the once high-flying Three Arrows Capital suddenly crumbled last summer.
Singapore authorities have not brought criminal charges against Zhu. But his sentencing to a four-month jail term and subsequent questioning highlight intensifying global efforts to hold key figures accountable and recover funds lost in crypto’s 2022 meltdown.
Zhu is expected to be released from prison later this month based on standard early release provisions for good inmate behavior. Yet liquidators stress they will continue pursuing full cooperation from him even after his sentence ends. Teneo has also secured a committal order against Three Arrows co-founder Kyle Davies, who remains at large.
The liquidator had been seeking over $1.3 billion directly from Zhu and Davies earlier this year, alleging the pair took on substantial leverage even with knowledge that Three Arrows Capital was already insolvent. With creditor losses topping $3.5 billion, the hunt for assets goes on.