By 3AC’s Su Zhu Examined in Singapore Court as Prosecutors Seek to Recover Creditor’s Assets
Last updated: December 12, 2023 20:38 EST
. 2 min read
Three Arrows Capital’s (3AC) co-founder Su Zhu was probed in a Singapore court for the first time about the company’s collapse as prosecutors intensified efforts to recover funds belonging to creditors.
According to a recent Bloomberg report, Zhu will be subject to a two-day hearing this week to respond to the legal representatives of Teneo, the company’s liquidator on the possible recovery of assets citing people familiar with the matter.
As Teneo has reportedly increased efforts to recover several assets due to creditors, their lawyers asked specific questions like how the fund failed and the events leading up to the failure including the whereabouts of assets.
On Dec 13, Zhu was approached by a Bloomberg journalist and acknowledged the court session but his legal representative declined requests for comments. However, details obtained from questions in court will be disclosed to the creditors.
Zhu is to be released on good behavior
According to the sources, Zhu is set to be released this month based on standard good behavior. The liquidators will continue to pursue all available opportunities to recover creditor assets worth billions in the coming months.
3AC co-founded by Zhu and Kyle Davies imploded in 2022 after leveraged bets went south leading to wider market losses and reduced investor sentiment. 2022 was a year riddled with several industry collapses putting traders and investors on the edge as the bear market pressed on.
Apart from 3AC, the Terra Network also suffered a similar fate causing billions of losses before the implosion of FTX capped the series of unfortunate events in November.
Turbulent season for Zhu and Davies
Zhu and Davies currently face civil charges bordering on recovery of assets and are yet to face any criminal prosecution in Singapore although arrest warrants have been issued on the duo over failure to comply with a court order.
A Singapore court sentenced both men to four months in prison for failing to cooperate with the probe by liquidators leading to the arrest of Zhu at the airport amid flight allegations while Davies remains at large.
Financial regulators including the country’s central bank also imposed further sanctions on the duo slamming them with a nine-month prohibition for failing to take necessary steps to prevent loss of funds at 3AC as well as providing false information.
🚨 Dubai’s Virtual Assets Regulatory Authority has slapped failed #3AC co-founders with a massive $2.7 million fine against their new crypto project OPNX.#CryptoNews #Dubaihttps://t.co/yXvyfAw68Z
— Cryptonews.com (@cryptonews) August 16, 2023
Both men have however described their bonafide efforts with the liquidators as “met with baiting” and have filed in a New York Bankruptcy Court that orders obtained by liquidators are baseless.
The dust raised by the 3AC crises has led to multiple global authorities ramping up efforts to roll out cryptocurrency regulations in a bid to protect investors. While these regulations are good for the market, the enforcement of some and the proliferation of lawsuits have weakened investor sentiment.
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