Our weekly roundup of news from East Asia curates the industry’s most important developments.
3AC creditors strike back
On Sept. 29, Su Zhu, co-founder of defunct Singaporean hedge fund Three Arrows Capital (3AC), was apprehended at Singapore’s Changi International Airport while attempting to flee the country following the issuance of a committal order.
Singaporean courts had issued an arrest warrant for Zhu after his failure to comply with a court order which compelled him to cooperate with the liquidator’s investigations and account for his activities as one of the founders of 3AC. Zhu was sentenced to four months in prison for the breach.
- Teneo, the appointed liquidator for 3AC, will seek to engage with Zhu on matters relating to the recovery of assets that belong to 3AC or were acquired using the fund’s funds during his imprisonment.
In July 2022, 3AC filed for bankruptcy after a series of failed leveraged trades on the Terra ecosystem, leaving creditors with over $3.5 billion in claims.
A second wave
In January, Zhu and Davies’ exchange platform OPNX launched with just $13.64 in trading volume on its debut. By June, it claimed nearly $50 million in daily trading volume.
However, after news of Zhu’s arrest and Davies’ indictment, the Open Exchange Token fell nearly 60% in a single day to $0.01. The token has lost 79% of its value in the past month.
- Holders of OPNX did not react well to news of Zhu’s arrest and Davies’ indictment, resulting in a significant decline in the value of the Open Exchange Token.
In August, Davies, Zhu, and Leslie Lamb, OPNX’s CEO, were fined the equivalent of $2.7 million by Dubai’s Virtual Asset Regulatory Authority for running OPNX as an unlicensed exchange in the Emirate.
Despite their other ventures, creditors are focused on recovering the assets of 3AC and maximizing returns for its creditors. Teneo has recovered several nonfungible tokens owned by 3AC and auctioned them for $13.4 million.
- Features: The secret of pitching to male VCs: Female crypto founders blast off
- Art Week: Connecting the Dots: Collectivism and Collaboration in the Crypto Art World
Zhiyuan Sun is a journalist at Coinpostman focusing on technology-related news. He has several years of experience writing for major financial media outlets such as The Motley Fool, Nasdaq.com, and Seeking Alpha.