Interpretation: Su Zhu’s four-month jail term may be extended after his arrest

Author: Qin Xiaofeng

Twelve hours ago, Three Arrows Capital (3AC) co-founder Su Zhu also sent “Happy Mid-Autumn Festival” blessings to all fans in Chinese on the X platform (formerly Twitter). A few hours later, the gears of fate began to turn and he was behind bars.

At 10pm Beijing time on the 29th, Singapore Business Times reported that Su Zhu was arrested at Changi Airport this afternoon while trying to leave Singapore.

According to reports, because Su Zhu deliberately failed to comply with the court order requiring him to cooperate with the liquidator in the investigation and explain his relevant activities during his tenure at 3AC, Teneo, as the joint liquidator of 3AC, applied to the local court on September 25 to order Su Zhu detention order. The court finally approved the application, arrested Su Zhu today and sentenced him to four months in prison.

While Su Zhu is in jail, the liquidator will continue to engage with him, focusing on recovering property belonging to 3AC, and Teneo can also apply for further court orders if necessary (note: the possibility of further extension of the jail time is not excluded).

“Throughout the entire process, the liquidator’s priority has been to recover 3AC’s assets and maximize returns to creditors.” Teneo added that another 3AC co-founder, Kyle Davies, was also sentenced to four months in prison, but he is currently Whereabouts unknown.

The US court had previously asked Kyle Davies to appear in court and respond, but was refused. He said that since Singapore does not allow dual citizenship, he gave up his U.S. citizenship when he got married in 2017 and became a permanent resident of Singapore. He is not subject to the jurisdiction of U.S. courts. This time the Singapore court issued a detention order. If Kyle Davies, a Singapore citizen, continues to ignore it, he may be held in contempt of court, have his passport frozen, and take other coercive measures.

Regarding non-cooperation with the liquidator’s investigation, almost the entire process of 3AC’s bankruptcy and liquidation was covered. At the beginning of the liquidation in July 2022, Zhu Su appointed a lawyer to explain, saying that the reason why he did not cooperate was because the relevant documents were not submitted in time, which was a “fishing behavior” to anger himself, and he and his family All have received death threats. Therefore, he and Kyle Davies will only focus on handling inquiries from the Monetary Authority of Singapore in the future and will also provide more detailed 3AC asset data. However, judging from the liquidator’s application for a court detention order today, it seems that Su Zhu has not fulfilled his promise.

With the arrest of Su Zhu today, the price of his Keys on the decentralized social platform friend.tech dropped from 0.961 ETH to 0.63 ETH, a drop of more than 30%. In addition, OPNX, a crypto claims and trading platform founded by Su Zhu, was also affected. The market situation shows that the price of OPNX platform currency OX once plummeted from 0.024 USDT to 0.011 USDT. It is currently quoted at 0.012 USDT, a drop of 50% in one hour.

Regarding OPNX, encryption analyst Loris once published an article saying that the volume and price fluctuated abnormally, or there were false transactions; Odaily Planet Daily also wrote an analysis, pointing out that its Launchpad project is basically a “three noes” project, just to increase the price of the platform currency OX. Recommended reading "“Three Nothings” project IEO, who is OPNX’s Launchpad fooling? 》

Two weeks ago, Singapore’s financial regulator issued a statement imposing a nine-year ban on the two founders of 3AC, Su Zhu and Kyle Davies, prohibiting them from engaging in any regulated activities. The pair are also prohibited from managing, serving as directors or being substantial shareholders of any capital markets services company under the Securities and Futures Act.

The Monetary Authority of Singapore accused 3AC of providing false information and failing to implement an appropriate framework risk management system. Loo Siew Yee, assistant managing director for policy, payments and financial crime at the Monetary Authority of Singapore, said in a statement that the Monetary Authority of Singapore takes seriously Su Zhu and Kyle Davies’ blatant disregard of the Monetary Authority’s regulatory requirements and their dereliction of duty.