Crypto News- In a dramatic turn of events, Su Zhu, a well-known and controversial figure in the cryptocurrency arena, has found himself ensnared in a legal ordeal following his recent arrest at Singapore’s Changi Airport as he attempted to depart the country.
Singapore Authorities Arrest Su Zhu, Founder of 3AC Crypto Hedge Fund
The revelation of his arrest was brought to the public’s attention through an announcement made by Teneo, the appointed liquidators responsible for overseeing the affairs of Three Arrows Capital (3AC), a prominent crypto hedge fund. Zhu’s apprehension stems from a court-issued committal order in Singapore, culminating in a four-month prison sentence. Interestingly, a parallel committal order, also imposing a four-month imprisonment term, has been handed down to Kyle Davies, another co-founder of Three Arrows Capital. Nevertheless, at the time of Zhu’s arrest, the whereabouts of Davies remained shrouded in mystery, adding an extra layer of intrigue to this unfolding narrative.
The legal action taken against Zhu and Davies has been catalyzed by their adamant refusal to comply with the court’s directives, which mandated that they furnish comprehensive accounts of their roles and activities as co-founders of 3AC and its former investment management. Within the cryptocurrency community, both Zhu and his partner, Kyle Davies, have been subjected to intense scrutiny, grappling with allegations of fraudulent activities, making Zhu’s arrest a momentous event, met with a sense of validation by some.
Amidst this legal turmoil, the on-chain investigator ZachXBT shared a screenshot from Zhu’s Instagram story, displaying a tranquil beach scene. Swiftly, members of the cryptocurrency community responded with jests and taunts, with one user humorously suggesting that Zhu could utilize the image to adorn his jail cell.
During Su Zhu’s period of incarceration, Teneo is poised to seize the opportunity to conduct interrogations concerning the assets associated with Three Arrows Capital. The overarching objective of Teneo throughout this arduous process has remained consistent: the recovery of 3AC’s assets with the aim of maximizing returns for the fund’s creditors.
Liquidators responsible for overseeing the proceedings have expressed recurring frustration at Zhu and Davies’ unyielding lack of cooperation throughout the intricate liquidation process. Both founders had previously received subpoenas, as authorities grappled with the challenge of making contact with them. Yet, astonishingly, they consistently disregarded all legal notifications, all the while maintaining an active presence on various social media platforms. Remarkably, even amidst the relentless scrutiny and pursuit by liquidators and authorities, Zhu and Davies displayed audacity by announcing the launch of OPNX, a novel cryptocurrency exchange, in collaboration with the founders of CoinFLEX.
In addition to grappling with his legal tribulations, Su Zhu is also confronted with a multi-year market activity ban imposed by Singaporean authorities, which took effect on September 13th. This prohibition signifies that neither Zhu nor Davies will be permitted to engage in any regulated financial activities within Singapore and its affiliated jurisdictions.
The pronouncement from the Monetary Authority of Singapore (MAS) carries a resounding assertion that Su Zhu and Kyle Davies deliberately misled the market regulator and were embroiled in a series of infractions spanning from August 2020 to January 2022. Loo Siew Yee, the assistant managing director overseeing payments and financial crime at the Monetary Authority of Singapore, left no room for ambiguity as she emphasized the grave nature of their misconduct. Her statement resounded with the unwavering commitment of MAS to uphold accountability, particularly when it concerns senior figures within the financial sector.
This chain of events casts a spotlight on the intricate and ever-evolving regulatory landscape that enshrouds the realm of cryptocurrencies. The fact that such senior figures like Zhu and Davies found themselves facing severe consequences underscores the heightened scrutiny and regulatory diligence surrounding this burgeoning industry.
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