On a notable day at Singapore’s Changi Airport, Zhu Su, the initiating executive of the distinguished cryptocurrency hedge fund Three Arrows Capital, was arrested following a tip-off by consultancy firm Teneo. This event transpired amid the ongoing liquidation matters concerning the hedge fund, which Teneo oversaw.
As per local media channel Zaoboo, Teneo’s involvement was instrumental in disclosing Zhu Su’s location, leading to his arrest.
The notable arrest of Zhu Su unfolded on the 29th of September when Teneo, acting as the liquidator and monitoring his movements, noticed a vehicle exiting his lavish Yarwood Avenue residence en route to the airport. Promptly, they informed the authorities regarding a potential exit attempt. Given that Zhu Su was already on a no-fly list owing to a detention directive, he was detained at the immigration exit checkpoint.
Furthermore, on the 5th of October, the Singaporean police affirmed the arrest of a 36-year-old individual at the airport, albeit without revealing the identity. However, later disclosures from sources intimate with the situation confirmed the individual to be Zhu Su. His attempted exit from Singapore was in violation of a court order that demanded his engagement with the ongoing liquidation inquiries, a mandate he is alleged to have violated, leading to his arrest and a subsequent four-month incarceration.
The quest for Kyle Davies continues
As the news of Zhu Su’s arrest reverberates through the cryptocurrency community, the location of Kyle Davies, another prominent figure of Three Arrows Capital, remains concealed. The continual search for Davies accentuates the unfolding narrative surrounding Three Arrows Capital, previously a revered entity in the cryptocurrency hedge fund landscape.
Zaoboo, referencing individuals acquainted with the situation, reported that Teneo is intending to seek authorization to converse with Zhu Su, presently incarcerated in Changi Prison, to garner information regarding assets tied to Three Arrows Capital. In case Zhu Su chooses not to engage, the liquidator might employ additional strategies to ensure compliance.
According to recent revelations, Teneo had previously mentioned that Zhu Su did not adhere to the directives from the Singapore court, which necessitated his cooperation with the liquidation probe. Consequently, a detention injunction was issued, and he was sentenced to a four-month jail term. Similarly, Davies received a detention injunction and an identical prison sentence for analogous reasons.
The reverberations of these events extend well beyond the individuals in question. Both Zhu Su and Davies were recently subjected to a nine-year prohibition by the Monetary Authority of Singapore, preventing them from participating in activities governed by the Securities and Futures Act. This ban also restricts them from occupying significant positions or possessing substantial shares in any capital market services entities.
The voyage of Three Arrows Capital, inaugurated in 2012, encountered a stormy phase last year with the disintegration of stablecoin TerraUSD and the associated token Luna, propelling the enterprise into bankruptcy procedures as decreed by the Singapore High Court.
In a discourse with CNBC in November 2022, Davies contested Teneo’s assertions that he and Zhu were non-cooperative with the liquidation proceedings, affirming that they had been compliant throughout.