Su Zhu being sentenced to prison, will the four-month imprisonment time be extended?

Su Zhu sentenced to prison, will the 4-month term be extended?

Author: Qin Xiaofeng, Odaily Star Daily

Su Zhu, co-founder of 3AC Capital, had previously sent greetings of “Happy Mid-Autumn Festival” to all his fans in Chinese on the X platform (formerly Twitter). A few hours later, the gears of fate began to turn and he found himself in trouble.

On the evening of the 29th, Singapore’s Business Times reported that Su Zhu was arrested at Changi Airport in Singapore when he attempted to leave the country this afternoon.

According to the report, Su Zhu deliberately failed to comply with a court order requiring him to cooperate with the liquidators and explain his activities during his tenure at 3AC. Teneo, the joint liquidator of 3AC, applied for a detention order against Su Zhu on September 25th. The court ultimately approved the application and arrested Su Zhu today, sentencing him to four months in prison.

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During Su Zhu’s imprisonment, the liquidators will continue to communicate with him, with a focus on recovering 3AC’s assets. Teneo can also apply for further court orders as needed (note: the possibility of extending the detention period cannot be ruled out).

“Throughout the process, the liquidators’ primary task is to recover 3AC’s assets and maximize the returns for creditors,” Teneo added. Kyle Davies, another co-founder of 3AC, was also sentenced to four months in prison, but his whereabouts are currently unknown.

Odaily Star Daily noted that a US court had previously demanded that Kyle Davies appear in court and respond, but he refused. He stated that he renounced his US citizenship when he married in 2017 and became a permanent resident of Singapore, not subject to the jurisdiction of US courts. With the issuance of a detention order by the Singapore court, Kyle Davies, as a Singapore citizen, may face charges of contempt of court, passport freezing, and other enforcement measures if he continues to ignore the order.

The issue of non-cooperation with the liquidators has been a recurring theme throughout the bankruptcy liquidation process of 3AC. At the beginning of the liquidation in July 2022, Zhu Su had appointed a lawyer to explain that the reason for his non-cooperation was that the relevant documents were not submitted in a timely manner, which he considered to be “fishing behavior” intended to provoke him. He and his family have also received death threats. Therefore, he and Kyle Davies will only focus on dealing with inquiries from the Monetary Authority of Singapore in the future and provide more detailed data on 3AC’s assets. However, judging from today’s application for a detention order by the liquidators, Su Zhu seems to have not fulfilled his previous commitments.

With Su Zhu’s arrest today, the price of his Keys on the decentralized social platform friend.tech dropped from 0.961 ETH to 0.63 ETH, a decrease of over 30%. In addition, OPNX, the encrypted claims and trading platform founded by Su Zhu, has also been affected. Market data shows that the price of the OPNX platform token, OX, plummeted from 0.024 USDT to 0.011 USDT, and is currently temporarily reported at 0.012 USDT, a decrease of 50% in one hour.

Regarding OPNX, cryptocurrency analyst Loris once wrote that its volume and price fluctuations were abnormal, and there may be fake trades. Odaily Star Daily has also written an analysis, pointing out that its LaunchLianGuaid project is basically a “three-nothing” project, just to boost the price of the platform token OX.

Two weeks ago, the Monetary Authority of Singapore issued a statement imposing a nine-year ban on 3AC’s two founders, Su Zhu and Kyle Davies, prohibiting them from engaging in any regulated activities. According to the Securities and Futures Act, the two are also prohibited from managing any capital market services company, serving as directors, or becoming major shareholders.

The Monetary Authority of Singapore accused 3AC of providing false information and failing to implement appropriate framework risk management systems. Loo Siew Yee, Assistant Managing Director responsible for policy, payments, and financial crime at the Monetary Authority of Singapore, stated that the authority takes a serious view of Su Zhu and Kyle Davies openly disregarding the regulatory requirements of the authority and their dereliction of duty.

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