Lawyers in Singapore have questioned Three Arrows Capital (3AC) founder Su Zhu in court for the first time as they continue the search for billions of dollars of creditors’ funds, reports Bloomberg.
In a two-day private hearing this week, Zhu took questions from lawyers representing Teneo, the firm tasked with liquidating 3AC. According to unnamed sources close to the proceedings, questioning focused on how and why 3AC failed and exactly where the missing assets went.
Teneo estimates that somewhere in the region of $3.3 billion is owed to 3AC creditors and the liquidator is seeking to claw back $1.3 billion from Zhu and his 3AC co-founder Kyle Davies.
Zhu was arrested under a committal order at Singapore’s Changi Airport in September after he ignored a court order and attempted to flee the country. The order stipulated that both Zhu and Davies were to be arrested on sight and imprisoned for four months. Zhu is reportedly set to be released this month for good behavior.
Liquidators are still hunting Davies.
3AC settled with Gemini for 97% less than it claimed
Last month, 3AC settled a $1 billion claim with crypto lender Genesis for $33 million.
Following “extensive negotiations,” both parties agreed to a “fair and equitable” agreement, according to a court letter from Genesis.
The lender concluded that the settlement is “in the best interests” of debtors’ estates and its creditors after it “considered the risks” of 3AC’s litigation.
In Genesis’ letter, it stated that the deal will “significantly smooth the path to confirmation of Genesis debtors’ chapter 11 plans” and “eliminate the risks, expenses, and uncertainty” of dragging out the lawsuit.
The deal would also “mutually release each other from liability,” according to the filing.