Su Zhu of Three Arrows: Singapore Court Grilling in Asset Hunt, Reveals Bloomberg Investigation

Su Zhu, one of the co-founders of the troubled cryptocurrency hedge fund Three Arrows Capital (3AC), is on the verge of being released from custody this month, thanks to his demonstrated commendable behavior, according to insider information obtained by Bloomberg. Zhu recently found himself in the spotlight as he underwent questioning in a Singaporean court, a notable event as it marked the first instance where he was compelled to shed light on the factors leading to the fund's downfall.

The legal proceedings unfolded over a span of two days, during which Zhu was obligated to provide responses to queries posed by Teneo's legal representatives, who were acting in the capacity of liquidators. The primary objective was to unravel the complexities surrounding the collapse of the fund and to determine the current location of its assets. Individuals with knowledge of the matter, speaking under conditions of anonymity due to the confidential nature of the proceedings, divulged this information to Bloomberg.

The line of questioning was initiated subsequent to Zhu's arrest in September, stemming from his non-cooperation in the winding-up process of 3AC. Initially handed a four-month jail term, Zhu is now anticipated to regain his freedom this month, with Bloomberg attributing this development to his positive conduct during his time in custody.

The financial challenges faced by Three Arrows Capital peaked, leading to the filing for Chapter 15 bankruptcy in July of the preceding year. This decision came as a response to significant losses linked to the collapse of the stablecoin issuer Terra. In June, reports emerged, revealing that liquidators were actively seeking to recover $1.3 billion from the co-founders of the bankrupt fund.

Despite Bitsday's efforts to solicit comments from Teneo, no response was received at the time of reporting. Additionally, Su Zhu chose to maintain silence when approached through the messaging platform Telegram. The intricate details of the legal proceedings and the contributing factors to the downfall of Three Arrows Capital are gradually unfolding as Zhu awaits his imminent release.

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