1 year ago
Zhu Su, co-founder of the now-bankrupt Three Arrows Capital (3AC), has been apprehended successful Singapore, according to a tweet by online quality aggregator db, known arsenic @tier10k connected X, who attributed the quality to a connection from Bloomberg.
At property time, not overmuch is known astir the crushed down the apprehension oregon the quality of immoderate charges brought.
Downfall
3AC’s downfall was a shocking lawsuit successful the crypto industry, fixed its salient presumption and important concern stakes successful projects specified arsenic LUNA, Aave, Avalanche, BlockFi, Deribit, and Solana. The company’s deficiency of a robust hazard absorption framework, coupled with reckless dealings and a important grade of greed, acceptable the signifier for its collapse, according to an analysis by CryptoSlate.
The concatenation absorption starring to 3AC’s illness was acceptable disconnected erstwhile LUNA, a large concern of the firm, experienced a clang successful May. Despite managing astir $18 cardinal successful crypto assets astatine its peak, 3AC failed to conscionable its borderline calls successful June, starring to speculation astir the firm’s fiscal status. Subsequently, the nonaccomplishment to repay borrowed wealth from crypto broker Voyager Digital, totaling $665 million, led to further destabilisation successful the industry.
The Monetary Authority of Singapore (MAS) played an instrumental relation successful bringing airy to the firm’s murky dealings. In September, MAS issued a nine-year prohibition bid against 3AC founders Zhu Su and Kyle Davies. MAS’s probe revealed that 3AC had failed to pass the regulator astir the assignment of Cheong Jun Yoong Arthur arsenic its portfolio manager and had misrepresented his employment status. These actions, successful summation to an inadequate hazard absorption framework, were attributed to the failures of Zhu and Davies successful fulfilling their duties.
3AC’s illness had far-reaching effects, impacting not conscionable its stakeholders but besides different companies successful the industry. Voyager Digital was forced to record for bankruptcy owed to the deficiency of repayment from 3AC. The cascade of events led to damages totaling much than $3 billion, affecting 27 companies successful total.
The station Su Zhu reportedly arrested successful Singapore appeared archetypal connected CryptoSlate.
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