Three Arrows Capital Capital (3AC) cofounder Su Zhu was arrested by Singaporean authorities while trying to leave the country on Friday, according to a statement provided to Unchained by Teneo, the bankrupt crypto hedge fund’s liquidator.

Teneo said it had attained a committal order from a Singapore court on September 25, sentencing Zhu and 3AC’s other founder, Kyle Davies, to four months in prison. On Friday, Zhu was apprehended at Singapore’s Changi Airport.

In a statement, Teneo said that joint liquidators had applied for the committal order against Zhu “as a consequence of his deliberate failure to comply with a court order obtained which, in essence, compelled him to cooperate with the liquidators’ investigations and account for his activities as one of the founders of 3AC and its former investment manager.”

Davies’ whereabouts are currently unknown, Teneo said.

Zhu will now be held in prison to serve out his four-month sentence as liquidators seek to recover assets from 3AC and make creditors whole.

In June, Teneo sought $1.3 billion from the founders, accusing them of assuming additional debt in the months before 3AC’s failure even though it was already insolvent.

Three Arrows began imploding with the collapse of the Terra Luna ecosystem in May 2022. Its failure rocked major crypto investors with exposure to the hedge fund, including Voyager Digital, Celsius Network and Genesis Asia Pacific, all of which subsequently filed for bankruptcy protection and helped propel the crypto market into an extended winter.

On September 13, the Monetary Authority of Singapore (MAS), the city-state’s main financial services regulator, prohibited Zhu and Davies from participating in regulated investment activity for nine years.

Zhu and Davies have been combative about their responsibility for 3AC’s demise. Earlier this year, they also unveiled a new venture capital fund, 3AC Ventures, and an investment in OPNX, a bankruptcy claims exchange.

“The liquidators will pursue all opportunities to ensure Mr. Zhu complies in full with the court order made against him for provision of information and documents relating to 3AC and its former investment manager during the course of his imprisonment and thereafter, and may make applications for further court orders as required,” Teneo said.