Three Arrows Capital co-founder Su Zhu appeared in Singapore courts on Wednesday to face questions about the cryptocurrency venture fund’s collapse.
Zhu and fellow Three Arrows co-founder Kyle Davies went dark following Three Arrows’ June 2022 collapse, and initially failed to cooperate with bankruptcy proceedings.
Their whereabouts were a matter of speculation until Zhu was arrested at Changi Airport in Singapore this September.
Zhu’s and Davies’ incompetencies in the running of Three Arrows were laid bare in bankruptcy filings leaked online by New York-based consulting firm Teneo.
The massive report contained revelations of severe mismanagement leading to the collapse of the once-leading Singapore-based crypto fund.
Among the most egregious of the affidavit’s rap sheet were the elaborate purchases of co-founders Su Zhu and Kyle Davies, including a $50 million superyacht.
A slew of high-value margin calls against the firm when the crypto markets tanked exposed an insurmountable debt blackhole that quickly led to its collapse.
Zhu confirmed this week’s questioning to a Bloomberg reporter.
Davies, who is a permanent resident of Singapore after renouncing his US residency in 2017, is barred from the city-state’s financial sector for nine years.