Su Zhu, co-founder of failed hedge fund Three Arrows Capital, has been arrested this afternoon at Changi Airport, while trying to leave the country.
According to Teneo, the joint liquidators of 3AC, Zhu has also been sentenced to a jail term of four months.
This follows a committal order granted by Singapore courts against Zhu on Sept 25, for deliberately refusing to comply with a court order to cooperate with the liquidators' investigations, and to also account for his activities while running the fund.
3AC went under last July amid the crypto crash. It is reportedly under probe in other jurisdictions including the US.
According to Teneo, a similar committal order was granted against the other co-founder of 3AC, Kyle Livingston Davies.
Under this committal order, any police officer can arrest both Zhu and Davies and imprison them for four months.
Davies' whereabouts, according to Teneo, is now unknown.
During his time in prison, the liquidators will seek to engage with Zhu on matters relating to 3AC, focusing on the recovery of assets that are either the property of 3AC or that have been acquired using 3AC’s funds.
"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," says Teneo.
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"Throughout the process, the liquidators’ priority has been recovering the assets of 3AC and maximising returns for its creditors," Teneo adds.
Just a fortnight ago, on Sept 13, MAS issued a nine-year prohibition order on both Zhu and Davies.
Last June, MAS had already reprimanded 3AC for providing false information to MAS and for failing to notify MAS about changes to Zhu’s and Davies’ directorship and shareholdings.
