Crypto billionaire Zhu Su to sell Bukit Timah bungalow after company gets liquidated

His company has filed for bankruptcy.

Low Jia Ying | July 02, 2022, 03:53 PM

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The embattled chief executive officer of cryptocurrency hedge fund Three Arrows Capital is looking to sell his S$48.8 million Good Class Bungalow (GCB) in Singapore after his company entered liquidation late last month.

The GCB is located at Yarwood Avenue in Bukit Timah, and sits on a 31,854 sq ft 999-year leasehold plot, according to The Straits Times (ST).

Bought GCB last year in a trust under three-year-old son's name

Zhu, who turned 35 in April 2022, was born in China, moved to the U.S. at age six, and has been a citizen of Singapore since 2016, according to Bloomberg.

He made headlines in late 2021 after he and his wife, Tao Yaqiong Evelyn, bought the bungalow in a trust under their three-year-old son's name.

The purchase of the bungalow was completed in March 2022, at a per sq ft price of S$1,532.

Photo via Google Street View.

Zhu's wife and their son are Singapore citizens as well.

The Yarwood house, according to Bloomberg, is still undergoing renovations.

A text message circulating among property agents reported by ST indicated that there was a "very urgent sale" for a GCB in Yarwood, and that the owners were looking to "sell fast".

According to ST, selling a property within three years of purchase could result in an additional 12 per cent seller's stamp duty (SSD) that the owners have to pay.

Zhu currently resides in a strata landed home in Balmoral Road, which was bought under Zhu's name.

The couple also own another GCB in the Dalvey Estate, under Tao's name.

The 15,565 sq ft property was purchased in September 2020 for S$28.5 million, according to ST.

Three Arrows Capital files for bankruptcy, reprimanded by MAS

According to The Business Times on Jul. 2, the Singapore-based Three Arrows Capital filed for a bankruptcy petition.

This was after a British Virgin Islands court ordered for the company's liquidation at the end of June 2022.

On Jun. 30, the Monetary Authority of Singapore (MAS) reprimanded Three Arrows Capital for providing false information to MAS and exceeding the amount of funds it was allowed to manage.

The regulatory body is looking into whether there have been more breaches by the hedge fund.

Three Arrows was one of the world's largest hedge funds, according to Bloomberg.

Earlier in March this year, it managed a portfolio of about US$10 billion (S$14 billion).

Cause of downfall

The firm's downfall was caused by the crypto crash, which started by the collapse of the “algorithmic stablecoin” Terra in May and the failure of the crypto bank Celsius in June, The Guardian reported.

Three Arrows Capital (3AC) had been deeply invested in a number of troubled cryptocurrency projects, including Terra, as well as Axie Infinity, a “play to earn” game that lost almost US$700 million (US$977 million) to a hack from North Korea in 2021, and BlockFi, a centralised cryptocurrency exchange that laid off hundreds of staff in mid-June.

The company also had sizeable leveraged investments in Bitcoin, Ethereum and other cryptocurrency assets, all of which have seen falls of up to 60 per cent in the first half of 2022.

Top photos via Zhu Su/Twitter and Google Street View