Lawyers for 3AC liquidator Teneo reportedly questioned Zhu about the collapse of the cryptocurrency hedge fund.
Su Zhu, co-founder of now-defunct cryptocurrency hedge fund Three Arrows Capital (3AC), will launch later this year, Bloomberg reported on December 13, a month after being detained for several months.
In September, Zhu was sentenced to four months in prison for failing to cooperate with the liquidation process of the failed company. According to Bloomberg, Zhu was released because of his good behavior in custody.
3AC liquidator questioned Zhu
Zhu recently appeared in a Singapore court, a development that coincided with lawyers for Teneo, 3AC's appointed liquidator, questioning him about the reasons for the company's collapse and the whereabouts of its assets.
Teneo hopes to recover $1.3 billion from Zhu and his partner Kyle Davies, who is also wanted by Singaporean authorities. Notably, the court-appointed liquidator had previously accused the bankrupt company's co-founders of being uncooperative and making "selective and piecemeal disclosures" about the bankrupt company's hedge fund assets.
Last year, 3AC was one of several cryptocurrency companies, including FTX and Celsius, to fold following a severe market downturn.
The hedge fund has a prominent presence in the industry and has significant investment stakes in projects such as LUNA, Aave, Avalanche, BlockFi, Deribit, and Solana. At its peak, the company managed approximately $18 billion in digital assets.
The company's decline was caused by poor risk management protocols and imprudent trading led to excessive greed.
Following the collapse, Singaporean authorities banned Su Zhu and Kyle Davies for nine years for breaching the country's Securities and Futures (Business Licensing and Conduct) Regulations (SFR) under the Securities and Futures Act 2001 (SFA). Additionally, the regulator said 3AC failed to inform about its appointment of Cheong Jun Yoong Arthur as its portfolio manager and misrepresented his employment status. #三箭资本 #SuZhu
