According to Bloomberg, Su Zhu, co-founder of Three Arrows Capital, was questioned for the first time in a Singapore court regarding the collapse of the cryptocurrency fund. Sources say that Su Zhu was asked to respond to questions from Teneo’s lawyers during a two-day court hearing this week, which included details about the reasons for the collapse of Three Arrows Capital and the whereabouts of the assets.
After Su Zhu was arrested on September 29 and sentenced to four months in prison for failing to cooperate with the liquidators’ investigation, the Singapore court earlier approved the questioning of Su Zhu. Sources say that Su Zhu was released this month based on good behavior standard terms.
The lawsuit between Zhu and Teneo representatives is a civil litigation, and neither Zhu nor Kyle Davies, another co-founder of Three Arrows Capital, faced any criminal charges in Singapore. Details obtained from the court hearing, according to sources, will be shared with creditors with the aim of maximizing debt recovery. It is reported that the liquidators are attempting to recover $1.3 billion, with Teneo estimating that creditors are collectively owed around $3.3 billion.