Crypto News – Bankrupt cryptocurrency hedge fund 3ACapital co-founder Su Zhu is said to have been detained at Singapore Changi Airport while attempting to leave the country after the Singapore Court issued an arrest warrant. According to the company’s liquidator, Teneo, the court issued committal orders for both Zhu and Kyle Davies, the other co-founder of 3AC, revealing the court’s determination to sentence both to four months in prison for failing to cooperate with the liquidation inquiry.
Breaking News: 3ACapital Co-founder Su Zhu Arrested in Singapore
Following the terrible crypto winter in July 2022, 3AC fell apart and went into liquidation. As a result, 3AC filed for Chapter 15 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York, requesting assistance from the court to manage creditors, while liquidators were attempting to recover more than $1 billion from the company.
In a later report, it was made clear that the liquidators had accused the co-founders of 3AC of failing to cooperate with asset recovery efforts and of neglecting to return client monies. According to Adam Goldberg, a lawyer for the liquidators, Zhu and Davies are more interested in protecting the company’s brand than in fostering asset recovery.
Teneo Accuses Co-Founders of Failure to Cooperate
The co-founders of the company engaged in a protracted dispute with Teneo, the public relations firm, according to the liquidator’s claims. The company continued, arguing how their strong engagement on social media networks contradicted their lack of cooperation with the liquidators.
Kyle Livingstone Davies and Su Zhu (together, the ‘Founders’) — both of whom have maintained a particularly active social media presence in the wake of the failure of their company — have failed to offer forthright cooperation. All the while, Mr. Davies has continued to post on his Twitter account, openly ignoring the Court’s directives and enjoying media attention while he continues to thwart efforts by liquidators to gain access to documents and information.
Teneo
Teneo noted the urgency with which the liquidators needed to collect funds and said they had asked the court to obtain a committal order requiring the co-founders of 3AC to comply with the liquidators’ demands. According to their strategy, the liquidators would talk to Zhu and Davies while they were being held captive in order to enlist their participation in additional recovery processes.
Throughout the process, the liquidators’ priority has been recovering the assets of 3AC and maximizing returns for its creditors.
Teneo
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