Su Zhu, co-founder of the now-defunct crypto hedge fund Three Arrows Capital (3AC), has faced questioning in a Singapore court as liquidators continue their efforts to recover assets linked to the failed fund.
The two-day court hearing marked a significant development in the ongoing legal proceedings surrounding Three Arrows Capital’s collapse, shedding light on the fund’s failures and the search for its assets.
Singapore court court grills Su Zhu over fund’s failure and asset whereabouts
During the court hearing, Su Zhu was required to provide detailed information about the circumstances leading to the failure of Three Arrows Capital and disclose any knowledge regarding the whereabouts of its assets.
These inquiries were made by lawyers representing the liquidator, Teneo, who are diligently working to piece together the puzzle of the fund’s financial unraveling.
Sources familiar with the matter, who wished to remain anonymous due to the private nature of the proceedings, revealed that this was the first time Su Zhu had been questioned in a Singapore court regarding the Three Arrows Capital debacle.
This development comes on the heels of Zhu’s arrest in September, which followed his failure to cooperate in the wind-up process of 3AC.
Anticipated release from jail for good behavior
Su Zhu, who had been incarcerated for four months, is reportedly expected to be released this month due to his good behavior during his time in jail.
His release may provide further clarity on the complex financial situation surrounding Three Arrows Capital, as investigators continue their pursuit of the fund’s assets.
Three Arrows Capital faced a tumultuous period leading up to its ultimate downfall. The fund filed for Chapter 15 bankruptcy in July of the previous year, citing substantial losses incurred following the collapse of the stablecoin issuer Terra.
The collapse of Terra sent shockwaves through the cryptocurrency market, leading to a cascade of financial challenges for Three Arrows Capital.
In the wake of Three Arrows Capital’s bankruptcy filing, liquidators have been actively seeking to recover funds for its creditors. It was reported earlier this year that liquidators were in pursuit of $1.3 billion from the fund’s co-founders, including Su Zhu.
This massive sum underscores the magnitude of the financial turmoil surrounding the failed hedge fund.
Despite the significant developments in the court proceedings, neither Teneo nor Su Zhu has offered any official comments on the matter.
Teneo, the liquidator overseeing the winding-down process, did not respond to requests for comment from CoinDesk. Su Zhu, on the other hand, declined to provide any statements via Telegram.
The silence from both parties suggests that the legal battle and asset recovery efforts are ongoing and may involve complex negotiations and legal maneuvers behind the scenes.