Su Zhu was arrested, and the detention period in April may be extended

*Written by: Qin Xiaofeng, * Odaily Planet Daily

Twelve hours ago, Su Zhu, co-founder of Three Arrows Capital (3AC), was still sending "Happy Mid-Autumn Festival" wishes to all his fans in Chinese on the X platform (formerly Twitter). A few hours later, the wheels of fate began to turn, and he found himself in custody.

At 10 PM Beijing time on the 29th, The Business Times reported that Su Zhu was arrested at Changi Airport while attempting to leave Singapore this afternoon.

According to reports, Su Zhu was deliberately not complying with a court order—requiring him to cooperate with the liquidators in their investigation and explain his activities during his tenure at 3AC. Teneo, the joint liquidator of 3AC, applied for a detention order against Su Zhu in the local court on September 25. The court ultimately approved the application and arrested Su Zhu today, sentencing him to four months in prison.

During Su Zhu's imprisonment, the liquidators will continue to engage with him, focusing on recovering assets belonging to 3AC. Teneo may also apply for further court orders as needed (note: the possibility of extending the detention period cannot be ruled out).

"The primary goal of the liquidators throughout this process is to recover 3AC's assets and maximize returns for creditors," Teneo added. Another co-founder of 3AC, Kyle Davies, was also sentenced to four months in prison, but his current whereabouts are unknown.

Odaily Planet Daily noted that a U.S. court had previously required Kyle Davies to appear and respond but was refused. He stated that he renounced his U.S. citizenship when he married in 2017, as Singapore does not allow dual nationality, and became a permanent resident of Singapore, thus not subject to the jurisdiction of U.S. courts. With the issuance of the detention order by the Singapore court, Kyle Davies, as a Singapore citizen, may face contempt of court charges, passport freezing, and other enforcement measures if he continues to ignore it.

Regarding his non-cooperation with the liquidators' investigation, it has almost surrounded the entire bankruptcy liquidation process of 3AC. At the beginning of the liquidation in July 2022, Zhu Su had appointed a lawyer to explain that his non-cooperation was due to the failure to submit relevant documents in a timely manner, which he described as "fishing behavior" intended to provoke him, and that he and his family had received death threats. Therefore, he and Kyle Davies would only focus on addressing inquiries from the Monetary Authority of Singapore and would provide more detailed data on 3AC's assets. However, from today's application for a court detention order by the liquidators, it seems that Su Zhu has not fulfilled his previous commitments.

With Su Zhu's arrest today, the price of his Keys on the decentralized social platform friend.tech dropped from 0.961 ETH to 0.63 ETH, a decline of over 30%. Additionally, the crypto claims and trading platform OPNX, founded by Su Zhu, was also affected. Market data showed that the price of OPNX's platform token OX plummeted from 0.024 USDT to as low as 0.011 USDT, currently reported at 0.012 USDT, with a one-hour decline of 50%.

Regarding OPNX, crypto analyst Loris previously stated that its volume and price fluctuations were abnormal and may involve false trading; Odaily Planet Daily also published an analysis pointing out that its Launchpad project is essentially a "three-no" project, merely aimed at boosting the price of the platform token OX, recommending reading “The 'Three-No' Project IEO, Who is OPNX's Launchpad Really Fooling?”

Two weeks ago, Singapore's financial regulatory authority issued a statement imposing a nine-year ban on the two founders of 3AC, Su Zhu and Kyle Davies, prohibiting them from engaging in any regulated activities. Under the Securities and Futures Act, they are also prohibited from managing any capital market service companies, serving as directors, or becoming major shareholders.

The Monetary Authority of Singapore accused 3AC of providing false information and failing to implement an appropriate framework for risk management systems. Loo Siew Yee, Assistant Managing Director of the Monetary Authority responsible for policy, payments, and financial crime, stated in a statement that the authority takes Su Zhu and Kyle Davies' blatant disregard for regulatory requirements and their negligence very seriously.