3AC Founder Zhu Su Set to Be Released This Month
Nearly one and a half years after the implosion of prominent crypto hedge fund Three Arrows Capital (3AC), co-founder Su Zhu faced intense questioning this week in a Singapore courtroom. The liquidators sought answers surrounding the firm’s dramatic collapse.
- Zhu was questioned over two days about the details of 3AC’s failure and the location of assets.
- First court appearance since being jailed in September for lack of cooperation.
- Liquidators estimate $3.3 billion owed to creditors and aim to maximize recoveries.
People familiar with the confidential proceedings told Bloomberg that Zhu was compelled to respond to extensive interrogation by lawyers representing court-appointed liquidation firm Teneo.
Topics covered included how the once high-flying fund failed so abruptly and the current whereabouts of assets that could be used to compensate an estimated $3.3 billion owed to creditors.
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3AC’s Zhu to be released for good behavior
While specific details remain private, any insights obtained will be shared with creditors. This is in Teneo’s pursuit of clawing back the maximum funds possible. However, the path to making creditors whole remains vastly uphill.
The hearing marks the 3AC co-founder’s first court appearance since being arrested in September. He was sentenced to four months of imprisonment for failing to adequately cooperate with winding up 3AC’s assets and operations.
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Now that he has served prison time over the firm’s actions, Zhu could potentially secure release this month for good behavior. However, the intensified legal spotlight looks unlikely to dim anytime soon. This is because liquidators, creditors, and authorities alike seek accountability for one of crypto’s costliest collapses.
The saga illustrates the chaotic aftermath left in the wake of crypto’s 2022 meltdown. For years, 3AC and Zhu cultivated an image as one of the industry’s most successful hedge funds before the collapse of Terra in 2022 triggered a cascading effect.
