Su Zhu, the founder and CEO of Three Arrows Capital, a prominent crypto hedge fund, has been arrested by the Singapore police on charges of fraud, money laundering and embezzlement. Three Arrows Capital, which was once one of the largest and most influential crypto funds in the world, announced its bankruptcy last week, after suffering massive losses due to the market crash and regulatory crackdowns. The fund claimed that it had lost over 90% of its assets under management, which amounted to more than $3 billion at its peak.
However, according to the police, the fund’s collapse was not due to market forces, but rather to a series of fraudulent and illegal activities orchestrated by Su Zhu and his associates. The police allege that Su Zhu had been siphoning off funds from the fund’s accounts to his personal offshore accounts, as well as using the fund’s money to finance his lavish lifestyle and gambling habits. The police also accuse Su Zhu of laundering money through various shell companies and crypto exchanges, and of embezzling funds from the fund’s investors and creditors.
The police said that they had been investigating Su Zhu and Three Arrows Capital for several months, after receiving multiple complaints and reports from the fund’s stakeholders. The police said that they had gathered enough evidence to arrest Su Zhu and raid his office and residence. The police also said that they had frozen Su Zhu’s assets and accounts, and that they were working with other authorities to track down his accomplices and recover the stolen funds.
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Su Zhu is currently being held in custody and is facing multiple charges that could result in a long prison sentence and hefty fines. He has not yet issued any statement or comment on the allegations. His lawyers have declined to comment as well.
The arrest of Su Zhu has sent shockwaves across the crypto industry, as he was widely regarded as one of the most influential and respected figures in the space. He was known for his bullish views on crypto and his aggressive trading strategies. He was also a vocal advocate for crypto regulation and innovation in Singapore, where he had established his fund in 2012.
Three Arrows Capital was one of the first crypto hedge funds in Asia, and had attracted many high-profile investors and partners, including Binance, BitMEX, FTX, Coinbase and Grayscale. The fund had also invested in many promising crypto projects and startups, such as Polkadot, Solana, Avalanche and Serum.
The fund’s bankruptcy and Su Zhu’s arrest have dealt a major blow to the crypto industry, especially in Singapore, which has been trying to position itself as a leading crypto hub in the region. The incident has also raised questions about the transparency, accountability and security of crypto funds and platforms, and has eroded the trust and confidence of many investors and users in the crypto space.
OpenSea tells users to rotate API keys after third-party Security Breach
OpenSea, the leading NFT marketplace, has issued a security alert to its users after a third-party service provider suffered a data breach that exposed some API keys. The company advised users to rotate their API keys as a precautionary measure and assured them that no funds or NFTs were at risk.
According to a blog post published by OpenSea on September 29, 2023, the security incident occurred on September 26, 2023, when one of its email service providers, SendGrid, was compromised by an unknown attacker. The attacker gained access to some of OpenSea’s email templates that contained API keys for interacting with the OpenSea platform.
OpenSea said that it immediately revoked the exposed API keys and notified the affected users via email. The company also said that it conducted a thorough investigation and found no evidence of any malicious activity or unauthorized access to user accounts or wallets.
However, as a best practice, OpenSea recommended that users who received the email notification should rotate their API keys as soon as possible. To do so, users need to go to their account settings page on OpenSea and click on the “Rotate API Key” button. This will generate a new API key that can be used for future transactions.
OpenSea also apologized for any inconvenience caused by the security breach and said that it is working closely with SendGrid to prevent such incidents from happening again. The company said that it takes user security very seriously and is constantly improving its systems and processes to protect its users and their assets.
OpenSea is the largest and most popular NFT marketplace, with over $10 billion in trading volume in the past month. The platform allows users to buy, sell, and create digital collectibles such as art, music, games, and sports memorabilia. OpenSea supports various blockchain networks, including Ethereum, Polygon, and Flow.