One of the co-founders of tumbled cryptocurrency hedge fund Three Arrows Capital, Su Zhu, has been arrested in Singapore and imprisoned for four months, according to the company’s liquidator.
Three Arrows Capital firm filed for bankruptcy the previous year when its fortunes suffered an intense drop after a tremendous sell-off of assets it had bet on as costs deeply fell in crypto markets.
Su Zhu was arrested at Singapore’s Changi airport while attempting to leave the city-state, Three Arrows’ liquidator Teneo said in a statement late on Friday.
His detention came after Teneo said it acquired a committal order this week against Zhu for failing to comply with its probe into the firm’s failure.
Teneo said, “The committal order granted by the Singapore Courts sentenced Mr Zhu to 4 months’ imprisonment.”
It said, the co-founder Kyle Davies was also committed to four months in jail but “his whereabouts stay anonymous at this point.”
Singapore’s monetary authority had prohibited the duo “from conducting regulated investment movement for nine years each,” Teneo said.
The liquidator, called to supervise the bankruptcy by a court in the British Virgin Islands, is trying to retrieve the assets of the Singapore-based and get returns to its creditors after the firm failed.
However, it has charged Zhu and Davies with not collaborating with the measure to return funds and failing to voluntarily provide information.
In a profile in The New York Times in June, the duo said they had been traveling since the hedge fund’s failure, including to the Indonesian resort island of Bali where they had been surfing and meditating.
Singapore police did not immediately respond to a request for comment.
