Three Arrows Capital (3AC) co-founder Su Zhu, after being subjected to extensive questioning by a Singapore court, will be released this month. Su Zhu was arrested following a four-month prison sentence handed down by a local court in September 2023 in Singapore while he was trying to flee the country. Teneo, a former employee of 3AC, disclosed that Zhu had been making plans with regard to issues related to 3AC.
According to a Bloomberg report dated December 13, Zhu completed his initial interrogation in Singapore this week and responded to his lawyers during a two-day hearing. According to individuals familiar with the matter speaking to Bloomberg, lawyers sought details about how the company failed and where its assets were.
According to Bloomberg sources, Zhu is expected to be released this month as per standard provisions due to his good behavior. In September, Teneo stated, “Liquidators will pursue all opportunities to ensure that Zhu complies with the court order to provide information and documents related to 3AC and the former investment manager, and if necessary, will apply for additional court orders.”
3AC began serving as a crypto hedge fund in 2012, established in Singapore by Kyle Davies and Su Zhu. The company was unable to meet margin calls from its creditors in the crypto space as Bitcoin‘s price fell below $20,000 in 2022.
During the ongoing proceedings, it was revealed that 3AC had borrowed Bitcoin from another bankrupt crypto lending company, BlockFi, but was unable to meet a margin call due to tightening financial conditions amidst unfavorable market conditions.