Su Zhu, Founder Of Three Arrows Capital, Sentenced To Prison In Singapore

Three Arrows Capital founder Shu Zhu was arrested by Singapore police. (Photo; Doc. Teacher Watcher)

JAKARTA - Su Zhu, co-founder of the triple Arrows Capital (3AC) cryptocurrency hedge fund, has been sentenced to four months in prison in Singapore after being arrested at the airport while allegedly trying to escape the country.

The sentence was handed down after Teneo's liquidation company received a court order against Zhu for a lack of cooperation in an ongoing investigation into the collapse of 3AC.

Teneo is trying to get back more than $1 billion (approximately IDR 14.3 trillion) on behalf of creditors 3AC, which has a total debt of around $3 billion (approximately IDR 42.9 trillion).

Teneo will work closely with Zhu in matters relating to 3AC during his sentence, in hopes of recovering the additional lost funds. Authorities were unable to arrest Kyle Davies, co-founder of Zhu in 3AC, although he faces the same 4-month sentence.

Once considered a very successful hedge fund crypto, 3AC suffered a huge loss in 2022 due to investments that failed in tokens such as Do Kwon's Terra Luna.

Zhu's arrest comes amid increasing legal scrutiny of alleged violations in the crypto industry. FTX founder Sam Bankman-Fried was arrested in December for fraud in connection with the collapse of the exchange.

Other executives such as Celsius's Alex Mashinsky and Terra's Do Kwon also face legal action over their role in failure in the crypto industry.