Benzinga - Currently facing court questioning, Three Arrows Capital co-founder Su Zhu will likely be released from jail soon on good behavioral grounds.
What Happened: A Singapore court questioned Zhu for the first time regarding the collapse of the crypto fund. The questioning said to be in private was about how the fund failed and the whereabouts of assets, as per people close to the matter reported by Bloomberg.
The two-day proceedings were a civil matter as Zhu and the other founder, Kyle Davies, have not faced any criminal charges in Singapore. The details from the questioning will be shared with creditors to maximize the recoveries as much as possible. The lawyers are seeking a response from Zhu for the liquidator, Teneo.
After Zhu’s arrest at the Singapore airport on Sept. 29, 2023, he was jailed for four months as he failed to cooperate with the task of winding up Three Arrows. The questioning was approved later in court.
Sources close to the matter state that Zhu will be released this month based on standard provisions for good behavior.
Also Read: Here Are The Notable Crypto Fallouts Over The Last Two Years
Background: Zhu and Davies have been accused by liquidators of not cooperating meaningfully with the probe which is mainly to recover $1.3 billion from both. Teneo estimated creditors are owed around $3.3 billion overall.
Zhu and Davies have a nine-year ban from Singapore’s financial arena based on the risky practices they undertook and the spread of misleading information. Davies remained an elusive figure, his whereabouts unknown despite efforts to find him.
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