Impact

Terra

<p><strong>Singapore</strong> – Su Zhu, a prominent figure in the cryptocurrency world and a founder of the multibillion-dollar crypto hedge fund Three Arrows Capital, has been arrested in Singapore. The arrest comes in the wake of the collapse of Three Arrows Capital<a href="https://walletinvestor.com/magazinadmin/crypto-exchange-blockchain-com-faces-270m-hit-on-loans-to-three-arrows-capital/" rel="noopener noreferrer nofollow"> last year</a>, a firm that had substantial holdings in digital assets, including those in the Terra ecosystem.</p> 
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<h2 style="text-align: center;" id="span-style-font-family-helvetica-arial-sans-serif-strong-collapse-of-three-arrows-capital-strong-span"><span style="font-family: helvetica, arial, sans-serif;"><strong>Collapse of Three Arrows Capital</strong></span></h2> 
<p>Three Arrows Capital, once valued at $10 billion, faced a dramatic downfall in 2022 following the implosion of the Terra ecosystem. The firm had excessive leverage on long positions across various cryptocurrencies and had borrowed hundreds of millions of dollars from crypto lending protocols. The collapse has led to extensive investigations to recover funds for the creditors of Three Arrows Capital.</p> 
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<h2 style="text-align: center;" id="span-style-font-family-helvetica-arial-sans-serif-strong-circumstances-of-arrest-strong-span"><span style="font-family: helvetica, arial, sans-serif;"><strong>Circumstances of Arrest</strong></span></h2> 
<p>Su Zhu was apprehended at Changi Airport while attempting to travel out of Singapore. The arrest was executed following a committal order granted by the Singapore Courts against him for failing to comply with a court order related to the ongoing liquidation investigation led by Teneo, the firm’s liquidator. Zhu has reportedly been uncooperative with the liquidators, leading to his four-month imprisonment sentence.</p> 
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<h2 style="text-align: center;" id="span-style-font-family-helvetica-arial-sans-serif-strong-sanctions-and-legal-proceedings-strong-span"><span style="font-family: helvetica, arial, sans-serif;"><strong>Sanctions and Legal Proceedings</strong></span></h2> 
<p>The Monetary Authority of Singapore has prohibited Su Zhu and his co-founder, Kyle Davies, from conducting regulated investment activity for nine years each. Davies, who has also been issued a similar committal order, remains at large, and his whereabouts are currently unknown. The liquidators are focusing on the recovery of assets that are either the property of Three Arrows Capital or that have been acquired using the firm’s funds.</p> 
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<h2 style="text-align: center;" id="span-style-font-family-helvetica-arial-sans-serif-strong-reactions-and-impact-strong-span"><span style="font-family: helvetica, arial, sans-serif;"><strong>Reactions and Impact</strong></span></h2> 
<p>The arrest of Su Zhu is a significant development in the cryptocurrency sector, highlighting the regulatory and legal challenges faced by crypto-native firms. The incident has sparked discussions about compliance and regulatory adherence in the rapidly evolving and high-risk domain of cryptocurrency investments.</p>

Su Zhu, Co-Founder of Three Arrows Capital, Arrested in Singapore

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