Liquidators’ tip-off led to the arrest of co-founder of failed crypto hedge fund last month

SINGAPORE: A tip-off from liquidators reportedly led to the arrest of Zhu Su, One of the co-founders of collapsed cryptocurrency hedge fund Three Arrows Capital at the Singapore Changi Airport on the 29th of last month.

Zhu Su ended up in jail in Singapore after months of disputes over locating the assets of the failed crypto hedge fund.

Currently, the Urban Redevelopment Authority (URA) is conducting an inquiry into the activities carried out at a S$48.8 million Good Class Bungalow (GCB) associated with Zhu Su.

The backyard of this sprawling 31,862-square-foot property has been transformed into an urban farm.

Four-month prison term

According to Bloomberg, Liquidators for Three Arrows Capital obtained a Singapore court order that resulted in a four-month prison term for Zhu Su for failing to cooperate in the winding up of the fund.

the liquidators had been monitoring him in Singapore, where he was known for hosting gatherings for crypto executives at his residence at Yarwood Avenue.

On that day, the liquidators alerted the police that Zhu Su was heading to Changi Airport. Police detained Zhu Su at the airport at 2:50 p.m., and the Singapore authorities later confirmed the arrest of a 36-year-old man.

The committal order, which led to Zhu’s imprisonment, is a civil matter, and neither Zhu nor the other founder of Three Arrows, Kyle Davies, have faced criminal charges in Singapore.

Three Arrows Capital’s 2022 collapse sparks a US$2 trillion digital asset crisis

Three Arrows Capital collapsed in 2022 due to leveraged bets gone wrong, contributing to a digital asset rout worth US$2 trillion. Liquidators are seeking to recover US$1.3 billion from Zhu Su and Kyle Davies.

Zhu Su and Kyle Davies were once prominent figures in the crypto industry during the pandemic-era bull run, but their reputations suffered as the crypto market experienced a downturn.

The liquidators are actively searching for Kyle Davies and are working with authorities worldwide to locate him.

Zhu and Davies have claimed that their efforts to cooperate with the liquidators were met with challenges and have called the court orders obtained by the liquidators “baseless.”

Singapore’s central bank imposed nine-year prohibition orders on both Zhu Su and Kyle Davies for risk management failings and providing false information regarding Three Arrows Capital.

The Dubai authorities had previously reprimanded Zhu Su and Kyle Davies for operating and promoting the OPNX crypto exchange without the required local license.

They claimed to have contributed initial ideas for OPNX but were not involved in daily management.

Zhu Su is in Changi Prison, where jail conditions are described, including four inmates in a cell sleeping on straw mats. In contrast, Zhu’s residence is a luxurious two-storey, six-bedroom home.

URA probes activities at Zhu Su’s prestigious Singapore residence

As reported by the Business Times, the Urban Redevelopment Authority (URA) is currently investigating the activities taking place at Zhu Su’s Good Class Bungalow (GCB).

Zhu Su and his wife, Dr Evelyn Tao, acquired the GCB – one of the most prestigious forms of landed housing in Singapore – for S$48.8 million under a trust arrangement for their child. The purchase was finalized in March of the previous year.

A URA spokesperson stated,“URA is engaging the operators at the premises to ascertain the nature and scale of the activities, and will determine the next course of action.”

The property gained attention in mid-2022 following the collapse of Singapore-based Three Arrows, which significantly impacted the cryptocurrency market.

Home-based businesses are permitted in private residential premises without requiring URA approval, provided they remain small in scale and the primary use of the premises remains residential, as explained by the URA spokesperson.

Homeowners interested in conducting small-scale farming activities on their properties can inquire with the URA to determine if their proposal aligns with the guidelines for home-based businesses, she added.

Zhu’s GCB transformed into an urban farm

Zhu’s GCB’s backyard has undergone a transformation into an urban farm known as Yarwood Homestead, a venture co-founded by his wife, Dr Tao.

It features rows of crops, a designated space for chickens, and a fish pond, which was converted from a swimming pool.

The place now serves as a research and development center for Abundant Cities, a Singapore-based company co-founded by Dr Tao and Ms Sarah Lewis, a professional in project management and marketing.

Dr Tao, who holds a PhD in biology, assumes the role of Chief Science Officer and has previously worked at the Temasek Life Sciences Laboratory and the Agency for Science, Technology, and Research.

Meanwhile, Ms Lewis serves as the Chief Executive of Abundant Cities, as indicated on the company’s website.

Official records reveal that Abundant Cities was established in September 2022, with the Yarwood GCB listed as its registered address.

The primary focus of Abundant Cities, through its research initiatives, is to develop sustainable and efficient agricultural practices suitable for urban environments.

While the company’s website does not disclose the exact address of Yarwood Homestead, it does mention that the site was collaboratively developed with the permaculture community, with its development commencing in April 2022, as evidenced by Abundant Cities’ social media posts.

The expansive lawn area has been repurposed into 36 crop beds, featuring produce such as okra, brinjal, and radishes, as detailed on the company’s website.

Notably, the swimming pool was transformed into a natural pond, complete with water plants, a meandering stream, and a population of small fish and shrimp.

The company has been offering guided tours and hosting private dining sessions at the Yarwood Avenue location since the beginning of this year.

It remains uncertain whether Zhu Su is actively involved in the day-to-day operations of the company.

Liquidators responsible for Three Arrows have been focused on recovering assets that either belong to the company or were acquired using the company’s funds. The Yarwood GCB is currently under the couple’s control.

Three Arrows Capital was once considered one of the largest and most successful crypto hedge funds before its collapse.

It shifted its registration to the British Virgin Islands after operating out of Singapore, and Teneo was appointed to liquidate its assets in June 2022.