The Singapore Court of Appeal has rejected an attempt by Three Arrows Capital (3AC) founders Zhu Su and Kyle Davies to overturn court orders requiring them to disclose financial dealings related to the defunct crypto hedge fund, according to a report by the Business Times.
The ruling upholds a 2022 disclosure order sought by 3AC’s liquidators, who are pursuing recovery efforts following the fund’s collapse. Both Zhu and Davies had failed to comply with the disclosure, leading to contempt of court proceedings and four-month jail sentences.
However, the court overturned a lower court’s decision allowing Zhu to be examined while in custody, stating such a move was inappropriate given the liquidators had already initiated civil proceedings in the British Virgin Islands to recover $66m.
Chief Justice Sundaresh Menon criticised the founders’ significant delay in challenging the orders, describing it as a “deliberate decision” to avoid enforcement and rejecting their argument that they believed they were cooperating in good faith.
The ruling marks a partial win for the liquidators, who are continuing their pursuit of 3AC’s missing assets across multiple jurisdictions.
