"A Founder of the Crypto Hedge Fund Three Arrows Capital Is Arrested" 29 September 2023.

Su Zhu, a founder of the cryptocurrency fund Three Arrows Capital, was arrested on Friday in Singapore while trying to leave the country, the liquidators of the company said.

Mr. Zhu, 36, was arrested at Changi Airport, the liquidators said. A Singaporean court on Monday had issued what are known as “committal” orders for Mr. Zhu and another Three Arrows founder, Kyle Davies, sentencing both to four months in prison after they failed to cooperate with the liquidators investigating their failed hedge fund. Mr. Davies’s location is unknown, according to Teneo, the firm that is working on the fund’s liquidation.

Last summer, Three Arrows, which is based in Singapore and managed $4 billion at its peak, filed for bankruptcy after the cryptocurrency markets melted down. When the fund collapsed, a large swath of the industry was dragged down with it. The ensuing crisis drained the savings of millions of amateur investors and plunged other companies into bankruptcy.

Mr. Zhu is the latest crypto executive to be arrested after the crypto market plunged last year....A lawyer for Mr. Zhu didn’t immediately respond to a request for comment...

...After Three Arrows collapsed, Mr. Zhu and Mr. Davies denied wrongdoing and went traveling. Mr. Davies spent time in Spain, Bali and elsewhere. Mr. Zhu played video games and found a surf instructor. In April, they unveiled a new business, Open Exchange, a marketplace for investors who had lost money during last year’s crypto implosions...