Three Arrows Capital (3AC), a digital asset hedge fund, co-founder Su Zhu has been arrested at the Changi Airport in Singapore, according to multiple reports.
3AC was a catalyst in the crypto collapse of 2022. Things took a dramatic turn for the worse when TerraUSD/LUNA saw its stablecoin become not so stable. The attempt to create an algorithmic asset that held its value to a dollar collapsed in 2021 with collateral damage spreading across the crypto-sphere. One of the early casualties was 3AC as it apparently held hundreds of millions of dollars in TerraUSD – among other digital assets, which quickly tanked in value.
3AC became insolvent, leaving about $3 billion of creditors holding the bag.
Reuters reports that Teneo, the bankruptcy manager handling the 3AC insolvency, revealed hat Zhu was apprehended – perhaps fleeing from the authorities. Zhu is expected to spend four months in prison after he did not cooperate with authorities investigating the 3AC debacle.
The other 3AC founder, Kyle Davies, is on the lam, with his whereabouts unknown.
As for 3AC, the entity is registered in BVI and is in the process of liquidation as ordered by the courts in the country with the hope of maximizing the value for the creditors.
