Fact-checked by Grok 2 weeks ago

Three Arrows Capital

Three Arrows Capital (3AC) was a Singapore-based founded in 2012 by Su Zhu and Kyle Davies, specializing in investments in and assets. The firm expanded significantly during the market expansion of the late and early , attracting substantial investor capital through leveraged positions in volatile assets. Its downfall began in May 2022 following heavy losses from the collapse of the Terra-Luna ecosystem, in which 3AC held significant exposure exceeding $400 million, triggering unmet margin calls from lenders. By late June 2022, 3AC entered liquidation proceedings in the after failing to satisfy obligations, including an $80 million payment to a , resulting in claims surpassing $3 billion against remaining assets estimated at around $1 billion. The episode amplified contagion across the sector, contributing to insolvencies at interconnected entities like and , while highlighting risks of high leverage and interconnectedness in .

Founders and Early Years

Su Zhu's Background

Su Zhu was born in April 1987 in and relocated to the at the age of six in 1993. He attended for secondary education before pursuing higher studies. Zhu graduated summa cum laude from in 2010 with a in . Following graduation, he entered the finance sector as a derivatives trader, initially joining in 2009 and later working at institutions including and , where he focused on strategies and trading. By 2011, Zhu had developed expertise in high-frequency and , which informed his later venture into management. He holds Singaporean citizenship and, alongside Kyle Davies, co-founded Three Arrows Capital in , leveraging his trading background to invest in cryptocurrencies and traditional assets.

Kyle Davies' Background

Kyle Davies, co-founder of Three Arrows Capital, attended , an elite boarding school in , where he first met his future business partner Su Zhu. He subsequently graduated from . Prior to entering the cryptocurrency space, pursued a career in traditional finance, joining as a trader in September 2009 and remaining there until 2012. His professional experience at the Swiss bank involved trading activities, aligning with the conventional finance trajectories of many principals before the rise of digital assets. In 2012, at age approximately 25, left to co-establish Three Arrows Capital with Zhu, initially targeting opportunities in fragmented emerging markets rather than cryptocurrencies.

Establishment and Initial Operations (2012–2018)

Three Arrows Capital was established in May 2012 by Su Zhu and Kyle Davies, longtime schoolmates with backgrounds in traditional finance, initially in with seed capital of approximately $1 million sourced from personal savings and family loans. The firm began operations as a entity resembling a private , concentrating on high-frequency in fragmented emerging markets rather than cryptocurrencies, which it did not pursue at inception. The core initial strategy involved exploiting mispricings in foreign exchange derivatives across emerging economies, including , , , and . Trades targeted small spreads—often fractions of a cent per dollar—on electronic platforms provided by banks, such as those involving the and , with high volume amplifying returns despite resistance from counterparties seeking to void favorable quotes. This approach yielded rapid early success, doubling the fund's capital in less than two months through persistent execution amid market inefficiencies. By 2013, Three Arrows Capital relocated its base to , registering there to capitalize on the jurisdiction's favorable tax regime lacking capital-gains levies and its strategic access to Asian markets. Operations expanded within this framework through , maintaining a focus on emerging-market fragmentation via derivatives trading, though by 2017 banks increasingly curtailed access due to the firm's aggressive , squeezing margins and prompting strategic reevaluation. The fund's remained modest compared to later peaks, operating without public disclosure of precise figures during this period, but its track record in traditional assets laid the groundwork for subsequent pivots.

Investment Strategy and Growth

Core Approach to Crypto and Traditional Assets

Three Arrows Capital (3AC), established in May 2012, initially operated as a emphasizing traditional assets, particularly market-neutral in emerging-market foreign exchange derivatives such as the and , alongside currencies in , , , and . The firm targeted inefficiencies from cross-border market fragmentation in Asian equity and sectors, employing opportunistic strategies to exploit triggered by events like elections or sanctions, aiming for consistent, hedged returns while preserving capital. By around 2017, following the 2017 crypto bull market and bear market recovery, 3AC pivoted decisively to , recognizing untapped opportunities such as the "kimchi premium" in South Korean trading. This shift marginalized traditional assets in their portfolio, with the fund instead building concentrated long positions in major digital assets including , , Solana (SOL), and (AVAX), alongside investments in decentralized finance (DeFi) protocols, non-fungible tokens (NFTs), GameFi projects, and blockchain startups like Neon and . Co-founder Su Zhu expressed strong conviction in crypto's transformative potential, describing 's role as a and advocating for a "freedom-centric system" through decentralized technologies, which informed their bullish, directional bets rather than diversified traditional holdings. Notable allocations included $200 million in Grayscale Bitcoin Trust in June 2020, escalating to $1.24 billion (36,969 BTC) by 2021, $230 million in in 2021, and $200 million in Terra (Luna) in February 2022. In crypto, 3AC's approach diverged from its earlier conservative traditional macro tactics by abandoning short positions and hedges, favoring aggressive —estimated at assets or higher—to amplify exposure through borrowing against crypto collateral from lenders like ($2.3 billion) and Voyager ($650 million). This enabled pursuits of yields via staking (e.g., ), lending, and speculative plays in illiquid assets like Deribit equity, but exposed the fund to amplified downside in correlated crypto drawdowns, contrasting the relative sought in traditional . By 2021, their holdings reached approximately $10 billion, underscoring a near-exclusive crypto focus that prioritized high-upside digital markets over conventional asset diversification.

Key Successes and Portfolio Expansion (2019–2021)

During the 2020 bull market, Capital's main fund achieved returns exceeding 5,900 percent, according to the firm's annual report, capitalizing on rising asset prices amid global economic stimulus from the . This performance propelled the fund's (AUM) beyond $2.6 billion by the end of 2020. Portfolio expansion accelerated in 2021, with AUM surpassing $9 billion as the firm diversified into (DeFi) protocols, layer-1 , and venture investments in crypto startups. Key holdings included significant positions in , , Polkadot, and Aave, alongside a major stake in Bitcoin Trust (GBTC) valued at up to $2 billion. The fund also allocated $200 million to () in February 2021, which initially appreciated amid the sector's growth. analytics firm Nansen estimated 3AC's crypto assets at around $10 billion by spring 2021, reflecting rapid scaling through concentrated bets on high-conviction projects. This period marked 3AC's shift from traditional forex trading roots to a prominent hedge fund, with investments extending to non-fungible tokens (NFTs), gaming ecosystems, and emerging tokens, enhancing its reputation for superior risk-adjusted returns among institutional investors. However, the firm's growth relied heavily on and borrowing, amplifying gains but embedding vulnerabilities not fully disclosed in public performance metrics.

Risk Management and Leverage Practices

Three Arrows Capital (3AC) employed high levels of to amplify returns on its primarily long-oriented positions in cryptocurrencies and related derivatives, a that prioritized growth during bull markets but exposed the firm to severe risks in downturns. The firm borrowed extensively from institutional crypto lenders such as Genesis Trading and , as well as through (DeFi) protocols, often maintaining loan-to-value (LTV) ratios approaching 77% on borrowings like USDC and collateralized by client deposits. This approach involved multiple layers of , including margin trading on exchanges, over-collateralized DeFi loans, and pledging assets across interconnected borrowing arrangements, which could compound effective beyond initial multiples. Risk management practices at 3AC were characterized by non-conservative margin requirements and a reliance on discretionary judgment rather than formalized, rigid policies typical of traditional funds. The firm did not maintain substantial s against downside scenarios, instead betting heavily on sustained market appreciation, as evidenced by its accumulation of a multi-billion-dollar position in Bitcoin Trust (GBTC) shares via leveraged exploiting persistent premiums to . monitoring appeared informal, with limited on aggregate ratios—estimated by observers to enable effective multiples of 10x or higher in certain trades—leaving the fund vulnerable to correlated asset declines without adequate stop-loss mechanisms or diversification buffers. These practices reflected an optimistic macro thesis on adoption but underestimated tail from amplification in illiquid markets, where forced liquidations could trigger cascading margin calls. Post-collapse analyses, including operational reviews, highlighted how 3AC's strategy deviated from prudent standards by prioritizing yield generation through borrowing over capital preservation, contributing to over $3 billion in unrealized losses during the market contraction. Creditors later revealed that the firm's interconnected borrowings created hidden concentrations, where collateral pledged to one lender impaired responses to demands from others, underscoring systemic fragilities in lending absent robust controls.

The 2022 Downfall

Precipitating Events: Terra/Luna Collapse and Market Volatility

The Terra ecosystem, centered on the algorithmic stablecoin TerraUSD (UST) and its sister token LUNA, experienced a rapid collapse in early May 2022, marking a pivotal trigger for Three Arrows Capital's (3AC) liquidity challenges. UST was designed to maintain a $1 peg through arbitrage with LUNA, but on May 7, large withdrawals from the Anchor Protocol—Terra's high-yield savings product—initiated a depegging event, with UST trading below $1 and LUNA dropping sharply from around $87. By May 9, the mechanism entered a "death spiral" as billions in UST were redeemed for newly minted LUNA, causing LUNA's supply to surge from about 350 million to over 6 trillion tokens in days, rendering its value effectively zero and erasing over $40 billion in combined market capitalization. The Terra blockchain halted operations multiple times, including on May 12, amid failed attempts to restore stability through proposals like a UST-LUNA swap. 3AC held substantial exposure to the Terra ecosystem, including approximately $462 million in tokens prior to the crash, which translated into billions in unrealized losses as LUNA's value plummeted. Co-founders Su Zhu and Kyle Davies had publicly endorsed , with 3AC deploying capital into UST yields and related assets, viewing it as a high-conviction bet on decentralized innovation. The collapse inflicted immediate paper losses estimated in the hundreds of millions for 3AC, exacerbating its leveraged positions across derivatives and loans from counterparties like . In a June 2022 statement, Davies acknowledged the event "caught us very much off guard," prompting 3AC to explore recapitalization options amid creditor demands. Compounding Terra's impact, broader cryptocurrency market volatility in May-June 2022 amplified 3AC's vulnerabilities through forced liquidations and margin calls. fell from over $40,000 in early May to below $20,000 by mid-June, while the total crypto halved from $1.8 trillion to under $900 billion, driven by macroeconomic pressures including rate hikes and risk-off sentiment. 3AC's strategy relied on high leverage—often 10x or more on futures and borrowings totaling billions—leaving it overexposed to correlated asset drawdowns beyond . This triggered defaults, such as a $650 million to Voyager, as counterparties like and enforced collateral seizures, initiating a of signals by late June.

Emergence of Liquidity Crisis

Following the collapse of TerraUSD and Luna in May 2022, Three Arrows Capital (3AC) encountered escalating margin calls from multiple lenders due to significant unrealized losses on its leveraged positions in volatile cryptocurrencies. The firm had substantial exposure to , holding approximately $462 million in tokens prior to the , which wiped out billions in value across the ecosystem. As cryptocurrency prices continued to plummet amid broader market volatility, lenders including , Genesis Trading, and demanded additional collateral or repayments totaling hundreds of millions of dollars to cover potential shortfalls. By mid-June 2022, 3AC's inability to satisfy these obligations became public, with reports indicating the firm had failed to respond to margin calls issued over the preceding weekend as and other assets fell sharply. specifically disclosed a on a $650 million from 3AC, prompting it to halt withdrawals and seek funding. preemptively liquidated positions tied to a "large client"—widely understood to be 3AC—to mitigate risks, highlighting the fund's overextended , estimated at up to 10x on certain bets. Rumors of circulated rapidly in crypto communities, exacerbating pressures on counterparties and underscoring 3AC's reliance on short-term borrowing to sustain long positions amid deteriorating liquidity. This cascade of unmet obligations marked the acute phase of 3AC's , as the firm scrambled for emergency capital but found avenues blocked by its interconnected debts exceeding $3.5 billion to over a dozen entities. The crisis stemmed causally from 3AC's high-risk strategy of amplifying returns through borrowed funds without adequate hedging against downside volatility, leaving it vulnerable when correlated assets like imploded and triggered forced sales across the portfolio. By late June, these failures culminated in formal proceedings, amplifying systemic strains in the lending sector.

Liquidation Proceedings and Court Orders

In June 2022, following Three Arrows Capital Ltd's (3AC) failure to meet margin calls from creditors amid the / collapse, liquidators Russell Crumpler and Christopher Farmer of Financial Advisory filed a petition in the , (Commercial Division) in the (BVI), where 3AC was domiciled. On June 27, 2022, the BVI court issued a provisional order, appointing Crumpler and Farmer as joint provisional liquidators with authority to take control of 3AC's assets, investigate its affairs, and pursue recoveries. The provisional order was converted to a full winding-up order on the same date, recognizing 3AC's with estimated creditor claims exceeding $3.5 billion against assets valued at under $1 billion. The liquidators were empowered to sell assets, including holdings and stakes in ventures like and , while the court issued directions prohibiting asset dissipation and requiring cooperation from directors Su Zhu and Kyle Davies. In December 2023, the BVI court granted a worldwide freezing order on approximately $1 billion in assets belonging to Zhu, Davies, and Davies' wife , covering bank accounts, properties, and crypto holdings to prevent dissipation amid recovery efforts. A parallel Singapore court order froze the founders' domestic assets the prior day, facilitating cross-jurisdictional enforcement. The U.S. Bankruptcy Court for the Southern District of New York recognized the BVI liquidation under Chapter 15 in August 2022, enabling U.S. asset seizures and creditor protections. In May 2024, the BVI court sanctioned an interim distribution of up to $100 million to preferential creditors, marking an early payout from recovered funds. Singapore courts issued disclosure orders compelling Zhu and to reveal asset locations, upheld by the Court of Appeal in June 2025 despite the founders' appeals claiming overreach. These proceedings highlighted jurisdictional coordination but faced challenges from the founders' non-cooperation, including Zhu's 2023 conviction in for ignoring examination summonses.

Legal and Regulatory Fallout

Bankruptcy Administration and Creditor Claims

Three Arrows Capital Ltd. commenced court-supervised liquidation proceedings in the on June 27, 2022, following its amid the broader market downturn. Russell Crumpler and Christopher Farmer of were appointed as Joint Liquidators, tasked with identifying, securing, and realizing the firm's assets for distribution to creditors while investigating the collapse. The proceedings operate under BVI , emphasizing and modified universalism to coordinate with parallel recognitions in jurisdictions like the and . Creditors submitted proofs of claim totaling approximately $3.5 billion from 27 entities, primarily cryptocurrency lenders and exchanges such as Genesis Global Capital, , and , as disclosed in July 2022 affidavits filed in support of the liquidation petition. These claims arose largely from leveraged loans extended to 3AC for trading positions in digital assets, with later estimates adjusting verified unsecured claims to around $3.3 billion. The Joint Liquidators have prioritized claim verification, rejecting or subordinating disputed amounts, including those involving affiliates or insider transactions, amid challenges from incomplete records due to the founders' limited cooperation. Asset recovery efforts have yielded over $1 billion in realizations by late 2023, including holdings, receivables from trading counterparties, and forced sales of illiquid positions, though the estate holds approximately $563 million in remaining illiquid crypto assets. In May 2024, the BVI authorized an interim of $100 million to certain fund creditors, marking the first partial payouts while reserving funds for administration costs and litigation. Overall recovery projections stood at 45.74% for unsecured creditors as of December 2023, potentially boosted by successful claims against third parties like the approved $1.53 billion amendment against the estate in a ruling on March 13, 2025. The administration has faced obstacles from founders Su Zhu and Kyle Davies' non-compliance, prompting BVI court orders in December 2023 to freeze over $1 billion in their personal assets worldwide and compel examinations of related parties. Additional rulings have affirmed the extraterritorial reach of liquidator summonses and sanctioned delays in document production, underscoring tensions between creditor recovery and jurisdictional enforcement in offshore structures. Ongoing litigation as of 2025 continues to pursue clawbacks and preferential transfers, with creditor committees in parallel US proceedings advocating for coordinated distributions to maximize collective recoveries.

Arrest and Imprisonment of Su Zhu (2023)

Su Zhu, co-founder of the Three Arrows Capital (3AC), was arrested on September 29, 2023, at Singapore's while attempting to depart the country. The apprehension occurred pursuant to a committal order from the Singapore for , as Zhu had repeatedly failed to comply with directives issued in July 2023 requiring full disclosure of his and 3AC's assets, along with assistance to liquidators in tracing and recovering funds amid the firm's . to the arrest, Zhu had ignored multiple court summonses and examination orders aimed at uncovering hidden assets, prompting liquidators to seek enforcement measures. Zhu received a four-month sentence immediately following his , with incarceration commencing on the same day to enforce compliance and deter further evasion. The court viewed his non-cooperation as deliberate obstruction of the process, which sought to address creditor claims exceeding $3.5 billion after 3AC's June 2022 collapse. , the joint liquidators, stated that the sentence aligned with prior rulings against Zhu and co-founder Kyle for similar breaches, emphasizing the need for accountability in cross-border proceedings. The imprisonment highlighted challenges in enforcing financial regulations against crypto executives operating across jurisdictions, as Zhu's evasion tactics had delayed asset recovery efforts despite international cooperation requests. authorities confirmed the 36-year-old's detention in response to queries, underscoring the city's strict approach to in disputes.

Ongoing Litigation and Asset Recoveries (2023–2025)

In December 2023, liquidators estimated a 46% recovery rate for Three Arrows Capital's (3AC) creditors, who are owed approximately $3.3 billion, with the estate holding $563 million in illiquid assets amid ongoing efforts to monetize holdings and pursue claims. On December 21, 2023, a (BVI) court ordered a freeze on over $1 billion in assets belonging to founders Su Zhu and Kyle , enabling to prevent transfers or sales as part of recovery actions against the founders and related parties. has pursued insolvent trading claims against the founders for $1.078 billion, with an additional $66 million claim specifically against . Litigation against counterparties intensified in 2024 and 2025. In August 2024, filed a $1.3 billion claim against in BVI court, attributing losses to the 2022 / collapse that precipitated 3AC's downfall. This culminated in a approved by a U.S. bankruptcy court on October 7, 2025, classifying the claim as a "Crypto Loss Claim" and reshaping accountability dynamics without specifying recovery amounts. Parallel proceedings continue in BVI and courts, where in June 2025, the Court of Appeal rejected Zhu and ' bid to overturn disclosure orders compelling them to reveal 3AC-related assets, facilitating further liquidator probes. Disputes with FTX remain active. In March 2025, a Delaware bankruptcy court permitted Teneo to expand 3AC's claim against FTX from $120 million to $1.53 billion, alleging improper liquidations exacerbated losses. FTX contested this in June 2025, arguing the damages stemmed from 3AC's leveraged positions rather than FTX actions. By September 2025, 3AC liquidators subpoenaed FTX executives for testimony in the ongoing battle, accusing FTX of unlawfully liquidating $1.5 billion in positions. Asset realization efforts include targeted sales, such as 's liquidation of 2.25 million (WLD) tokens in September 2025, deposited to centralized exchanges to convert holdings into recoverable funds. continues monitoring 3AC-linked wallets for NFT transfers and other dispositions, with recoveries complicated by the estate's exposure to volatile crypto assets and jurisdictional challenges across BVI, , and U.S. courts. As of October 2025, full creditor distributions remain pending resolution of these claims, with emphasizing equitable wind-down amid $1.3 billion sought directly from the founders.

Founders' Post-3AC Ventures

Launch and Closure of OPNX (2023–2024)

In February 2023, Su Zhu, co-founder of the collapsed Three Arrows Capital (3AC), announced the formation of OPNX, a designed to facilitate trading of "claims" on distressed or bankrupt crypto assets, allowing users to monetize trapped funds from insolvencies such as those involving . The platform positioned itself as a hybrid venue for spot crypto trading, derivatives, and bankruptcy claim swaps, initially leveraging the FLEX token from the affiliated CoinFlex exchange. OPNX opened a waitlist shortly after the announcement and formally launched on April 4, 2023, amid skepticism due to the founders' recent role in 3AC's $3.5 billion liquidation. During its brief operation, OPNX introduced the token on May 31, 2023, as a utility and governance asset for staking, fee discounts, and platform participation via "" mechanism, with claims trading expanded to include recoveries. The exchange claimed to enable users to convert illiquid claims into for futures trading, addressing gaps in post-2022 bankruptcies, though trading volumes remained modest and the platform faced for its ties to 3AC's mismanagement . Kyle Davies, the other 3AC co-founder, described OPNX as a tool to "unlock value" from positions in interviews, but regulatory scrutiny and low adoption persisted given the founders' ongoing proceedings. OPNX announced its shutdown on February 1, 2024, stating that the website would cease operations in February, with users instructed to withdraw funds and close positions by February 14. The closure statement provided no explicit reason, but it coincided with intensified legal pressures, including recovery claims by the FTX estate against 3AC-related entities and Su Zhu's prior arrest in December 2023 for contempt of court in the British Virgin Islands. The OX token subsequently plummeted, reflecting diminished platform utility, while broader market recovery in crypto assets reduced the perceived need for specialized claims trading venues.

OX.FUN Exchange and Related Controversies (2024–2025)

OX.FUN is a cryptocurrency derivatives exchange launched in January 2024, operating as a hybrid centralized-decentralized (CEX/DEX) perpetual contracts platform with a gamified dual-token model involving OX and FUN tokens, where traders earn $OX rewards for closing profitable positions. The platform secured $4 million in early-stage venture funding in February 2024 from investors including Foresight Ventures, GenBlock Capital, and Double Peak Group. Su Zhu and Kyle Davies, co-founders of the collapsed Three Arrows Capital, serve as advisors to OX.FUN, drawing scrutiny given their prior roles in the 2022 crypto market turmoil. In February 2025, OX.FUN faced public disputes with NFT collective JefeDAO over a frozen $1 million USDC deposit, which JefeDAO claimed resulted from an unfulfilled promotional obligation and accused the exchange of extortion by demanding six months of daily social media promotion for fund release. OX.FUN countered that the freeze complied with its rules against suspected market manipulation or wash trading by JefeDAO-linked accounts, denying any extortion and attributing the conflict to a misunderstanding while rejecting broader insolvency rumors amplified on social media. The incident led to a sharp decline in the $OX token price and speculation about the platform's liquidity, though OX.FUN maintained operations without confirmed layoffs or shutdowns despite unverified rumors. By May 2025, additional backlash arose when OX.FUN doubled the $OX supply to 9.8 billion tokens, with community members criticizing the move for lacking adequate prior notice despite the platform's assertions of transparency via earlier announcements. This supply expansion fueled concerns over dilution and , exacerbating distrust tied to the exchange's ties to 3AC founders amid ongoing market . No regulatory actions or formal investigations into these events were reported as of October 2025, though the controversies highlighted persistent questions about in founder-linked ventures post-3AC .

$3AC Token Initiative

In late 2024, Su Zhu and Kyle Davies, co-founders of the defunct Three Arrows Capital (3AC), were associated with the launch of Three Arrowz Capitel, a project featuring the $3AC token on the . The initiative positioned itself as a satirical revival of 3AC, claiming solvency and legal status while emphasizing meme-driven , including private sales that allocated proceeds roughly evenly between team wallets and liquidity provisions. The project's account (@betterthan3AC) promoted it with ironic narratives, such as allowing Kyle Davies to "trade sometimes," amid ongoing legal scrutiny of the founders. The $3AC token faced immediate backlash for its token distribution, with approximately 84% of supply directed to members and s, raising concerns over fairness and potential for in a volatile market. Critics highlighted this as emblematic of high-risk, speculative ventures by figures with a history of leveraged failures, contrasting the project's hype around "autistic" and burn mechanisms—such as burning s for every 100 on-chain users holding over $100 worth—to foster scarcity. Despite the controversy, the achieved a market capitalization of around $5 million shortly after launch, fueled by on platforms like Telegram. Su Zhu's public endorsement, including going long on $3AC, triggered a price surge exceeding 30% on October 14, 2024, demonstrating the influence of the founders' activity on investor sentiment. However, the token's value remained highly volatile, with rapid pumps and dumps characteristic of coins, and strategic trades reportedly yielding profits like $1.5 million for early participants in short windows. As of October 2024, the project continued operations amid the founders' unresolved obligations, with no direct ties to 3AC creditor recoveries, underscoring tensions between speculative initiatives and prior duties.

Controversies and Broader Implications

Allegations of Mismanagement Versus Market Realities

The (MAS) issued a against Three Arrows Capital (3AC) on June 30, 2022, for providing false information about the of its fund to an offshore entity effective September 1, 2021, and for failing to notify regulators within 14 days of changes in directorships and shareholdings involving founders Su Zhu and Kyle Davies. The firm also breached the S$250 million threshold for registered fund management companies without a required license during July–September 2020 and November 2020–August 2021, operating with significantly higher exposures in assets. MAS extended sanctions in September 2023 by banning Zhu and from Singapore's financial sector for nine years, attributing the action to repeated securities violations and the absence of an adequate tailored to volatile investments. Liquidators and counterparties alleged further operational lapses, including 3AC's delayed responses to margin calls in late May and June 2022, which strained lenders like amid rumors of insolvency. The firm's concentrated bets, notably over $200 million in tokens acquired via the Luna Foundation Guard's February 2022 raise, resulted in losses exceeding $1 billion following Terra's algorithmic depeg on May 9, 2022. These internal failures unfolded amid a broader cryptocurrency market contraction in 2022, where total market capitalization fell from a November 2021 peak of roughly $3 trillion to below $900 billion by late June, driven by the collapse's contagion effects and macroeconomic tightening via rate hikes. The / ecosystem's implosion alone vaporized over $40 billion, triggering forced liquidations across leveraged positions industry-wide and exposing liquidity mismatches at multiple firms, including non-3AC entities like . While 3AC's governance shortcomings—such as inadequate hedging and transparency—intensified its vulnerability, the exogenous shock's scale suggests that even diversified funds with moderate leverage faced existential pressures, as evidenced by correlated insolvencies uncorrelated with equivalent regulatory infractions. Zhu acknowledged injecting personal funds into 3AC during the downturn and described the outcome as "regrettable," without disputing core risk oversight critiques. Empirical review reveals that 3AC's pre-crisis , while aggressive, aligned with prevailing norms during the 2020–2021 bull phase; however, the failure to de-lever as spiked deviated from causal risk principles, amplifying market-driven losses beyond peers who survived via earlier or lower exposure concentrations.

Effects on the Crypto Ecosystem and Creditors

The collapse of Three Arrows Capital (3AC) in June 2022 amplified contagion risks across the lending and trading sectors, as the firm's $3.5 billion in liabilities stemmed from unmet margin calls on highly leveraged positions exposed to the Terra-Luna ecosystem failure. This triggered forced asset sales that strained counterparties, including , which disclosed a $650 million by 3AC, hastening its own filing on July 5, 2022. Similar exposures at Genesis Trading and exacerbated liquidity shortages, contributing to a broader that wiped out billions in and deepened the 2022 winter. The event underscored interconnected leverage in markets, where 3AC's strategies, such as those involving Trust shares, masked underlying solvency risks until rapid cascades ensued. Market-wide, 3AC's downfall eroded confidence by revealing opaque risk concentrations in hedge funds and lending protocols, with ripple effects including heightened volatility and reduced institutional participation. Total cryptocurrency market capitalization fell 48% from May to June 2022, partly attributable to such interconnected failures rather than isolated price declines. Analyses of the period highlight how 3AC's implosion propagated through credit markets, prompting stricter margin requirements and deleveraging among survivors, though it did not directly precipitate later collapses like FTX's in November 2022. For creditors, primarily crypto-native lenders and exchanges, recovery efforts yielded mixed outcomes amid protracted liquidations. By December 2023, Teneo-appointed liquidators projected a 45.74% recovery rate on admitted claims, supported by $563 million in illiquid assets like digital holdings and purchases by founders, though realization depended on market conditions and litigation. Major creditors pursued clawbacks, including a $33 million settlement with in 2024 resolving over $1 billion in disputed claims, while 3AC's estate amended its against 's to $1.53 billion in March 2025, alleging improper position liquidations valued at $284 million by FTX administrators. Liquidators also targeted founders Su Zhu and Kyle Davies for $1.3 billion in personal recoveries announced in June 2023, reflecting allegations of mismanaged withdrawals exceeding $100 million pre-collapse. These proceedings highlighted challenges in valuing and distributing assets, with unsecured creditors facing prolonged delays despite partial distributions commencing in 2024.

Perspectives on Leverage, Regulation, and Lessons Learned

The collapse of (3AC) underscored the perils of excessive in trading, where the firm reportedly employed up to 20x on positions, magnifying gains during markets but precipitating rapid amid the 2022 downturn. This approach, involving heavy borrowing from lenders like and Voyager to fund long positions in assets such as and related derivatives, exposed 3AC to acute risks when counterparties demanded amid falling prices, leading to forced liquidations and a $3.5 billion exposure in strategies like GBTC . Analysts attribute the firm's downfall not merely to market volatility but to unchecked without adequate hedges or position limits, as evidenced by its failure to maintain a formal capable of monitoring exposures in . Regulatory perspectives post-3AC highlight how the sector's light-touch oversight enabled such high-risk practices, with jurisdictions like Singapore's Monetary Authority () later citing 3AC's unlicensed activities and deficient controls as warranting bans on its founders for nine years. Critics argue that the absence of prudential standards—such as capital requirements or leverage caps akin to traditional finance—fostered interconnected vulnerabilities, where 3AC's $10 billion in borrowings intertwined with platforms like , amplifying contagion effects across the ecosystem. Proponents of stricter rules, including adjusted regulations for systemically important intermediaries, contend this would mitigate without curtailing innovation, drawing parallels to the 1998 that prompted enhanced oversight in funds. However, some market observers caution that over-regulation could drive activity , emphasizing self-imposed discipline over mandates, given 's decentralized ethos. Key lessons from 3AC's liquidation include the necessity of robust operational , such as verifying and implementing dynamic models to cap and concentration risks, which the firm neglected despite warnings from events like the Terra-Luna implosion in May 2022. Investors and lenders learned to prioritize in fund exposures and avoid over-reliance on opaque "revolutionary" narratives promising perpetual upside, as 3AC's promoters downplayed cyclical downturns. The episode reinforced that in illiquid, volatile markets, liquidity mismatches—borrowing short-term to fund long-term bets—can cascade into systemic threats, prompting creditors like to adopt stricter client protections and real-time data infrastructure for assessment. Ultimately, the fallout advocates for diversified portfolios, under extreme scenarios, and independent audits to prevent similar failures, balancing crypto's high-reward potential with causal safeguards against leverage-induced wipeouts.

References

  1. [1]
    $$3 Billion Crypto Hedge Fund Three Arrows Capital Co ... - Caproasia
    Jun 25, 2025 · Earlier in July 2022, Three Arrows Capital had been ordered into liquidation by a BVI Court (British Virgin Islands), after failing to meet ...Missing: details | Show results with:details
  2. [2]
    Three Arrows Capital | TrendSpider Learning Center
    Its founders, Kyle Davies and Su Zhu, set up the fund in 2012. The collapse of TAC is one of the most significant in the history of hedge fund trading losses.Missing: background | Show results with:background
  3. [3]
    Inside the Crash of Three Arrows Capital - New York Magazine
    Aug 15, 2022 · Three Arrows Capital, once perhaps the most highly regarded investment fund in a burgeoning global financial sector, collapsed in excruciating and embarrassing ...
  4. [4]
    Failed hedge fund Three Arrows Capital estimated assets at $1 ...
    Dec 16, 2022 · Three Arrows Capital (3AC), the now-bankrupt crypto hedge fund, estimated its assets at around $1 billion as of July, according to a document ...
  5. [5]
    Three Arrows Liquidators Seek $1.3 Billion Over 2022 Luna Crash
    Aug 12, 2024 · Three Arrows' held about $462 million worth of Luna at the end of April 2022, but that value plummeted to a little more than $2,700 by May 14, ...Missing: details | Show results with:details
  6. [6]
    Crypto crash: unpicking the Three Arrows Capital liquidation - S-RM
    The ongoing liquidation of multi-billion dollar crypto hedge fund Three Arrows Capital Limited ('3AC'), originally based in Singapore, has provoked headlines ...
  7. [7]
    The Three Arrows collapse: What it means for creditors and ... - Withers
    Jul 5, 2022 · Three Arrows has entered liquidation in the British Virgin Islands (“BVI”) following claims that it failed to pay US$ 80 million owed to DRB ...
  8. [8]
    Liquidators of Three Arrows Capital Ltd obtain court approval for US ...
    May 14, 2024 · 3AC entered liquidation in June 2022. Since then, the Joint Liquidators have received claims from creditors in excess of US$3 billion.Missing: details | Show results with:details
  9. [9]
    How the fall of Three Arrows, or 3AC, dragged down crypto investors
    Jul 11, 2022 · The bankruptcy filing of 3AC, a crypto hedge fund that failed to meet margin calls, set off a domino effect in the market.Missing: establishment | Show results with:establishment<|separator|>
  10. [10]
    Su Zhu: From luxury to fugitive, $3 billion to zero in 72 hours
    Dec 20, 2024 · Together with his ex-high school classmate Kyle Davis, who started the Singapore-based hedge fund manager 3AC in 2012, became the world's ...
  11. [11]
    Zhu Su, Three Arrows Capital Ltd: Profile and Biography
    TENURE AT CURRENT POSITION. PENDING ; PREVIOUS POSITION. Trader, Deutsche Bank AG ; EDUCATION. Phillips Academy. Columbia University ; BOARD MEMBERSHIPS. Three ...Missing: background early
  12. [12]
    Su Zhu - Golden
    Zhu began his career after graduating from Columbia University with a bachelor's degree in mathematics. He started working at Flow Traders in 2009 as a trader.Missing: background | Show results with:background
  13. [13]
    Notable Crypto Personalities - Su Zhu | The Block
    Before establishing Three Arrows Capital, Zhu held roles in traditional finance, having worked as a derivatives trader at Credit Suisse and Deutsche Bank. His ...Missing: biography history
  14. [14]
    Zhu Su: Biography, Career, and Business Insights - Traders Union
    Oct 9, 2025 · Prior to co-founding Three Arrows Capital, Zhu worked in trading and investment roles, where he developed expertise in global macro strategies ...Missing: background | Show results with:background
  15. [15]
    How Three Arrows Capital Blew Up and Set Off a Crypto Contagion
    Jul 12, 2022 · The duo's background before crypto was conventional for finance. After graduating from the elite Massachusetts boarding school Phillips Academy ...Missing: education | Show results with:education
  16. [16]
    Kyle Livingston Davies, Three Arrows Capital Ltd - Bloomberg.com
    Kyle Livingston Davies. Chairman/Co-Founder, Three Arrows Capital Ltd ; PREVIOUS POSITION. Trader, Credit Suisse ; EDUCATION. Phillips Academy. Columbia ...Missing: background | Show results with:background
  17. [17]
    Kyle Davies | People Directory - CryptoSlate
    Kyle Davies is an entrepreneur and businessman based in Singapore who co-founded Three Arrows Capital (3AC), a bankrupt cryptocurrency hedge fund.
  18. [18]
    30-something ex-Credit Suisse traders now bitcoin billionaires
    May 26, 2021 · According to their respective LinkedIn profiles, only Kyle Davies was actually a “trader at Credit Suisse”, spending a bit less than three years ...
  19. [19]
    Three Arrows Capital: Fast growing emerging markets hedge fund
    Nov 3, 2014 · Kyle Davies and Su Zhu founded Three Arrows Capital in May 2012 with the focus to exploit market fragmentation in emerging markets through ...Missing: career | Show results with:career
  20. [20]
    Crypto Analysis Case Study - 'Three Arrows Capital': PART I
    Jul 15, 2022 · According to the latest reports, the founders of 3AC, Mr Kyle Livingston Davies and Mr Su Zhu have now been reported as missing, in hiding, or ...
  21. [21]
    Three Arrows Capital's Su Zhu Remains Bullish on Crypto Investments
    Apr 7, 2022 · Three Arrows Capital's Su Zhu says Bitcoin's potential to be a reserve currency is clearer than ever before.
  22. [22]
    How Hedge Fund Three Arrows Capital Was Crypto's Long-Term ...
    Aug 24, 2022 · CK believes many people blamed the implosion of Three Arrows Capital, a $10 billion crypto hedge fund, for some of the turmoil in the crypto ...
  23. [23]
    Three Arrows Capital Portfolio | CryptoRank.io
    Three Arrows Capital Cryptocurrency Portfolio ; Ethereum. ETH. $ 4,160 ; Avalanche. AVAX. $ 33.90 ; Polkadot. DOT. $ 3.98 ; Aave. AAVE. $ 275.61.
  24. [24]
    Three Arrows Capital Fund Portfolio - Chain broker
    Three Arrows Capital invests in a wide range of blockchain and cryptocurrency projects, including decentralized finance (DeFi), non-fungible tokens (NFTs), ...Missing: expansion 2019-2021
  25. [25]
    Everything About Three Arrows Capital's Insolvency Risks and What ...
    Jun 18, 2022 · The company used these deposits to borrow $189 million in USDC and USDT thereby putting their Loan-to-Value ratio at 77%. Due to the illiquidity ...
  26. [26]
    Crypto Analysis Case Study - 'Three Arrows Capital': PART II
    Jul 18, 2022 · 3AC employed leveraged trading which very likely contributed to its downfall. There are three types of leverage which 3AC may have used. First, ...Missing: borrowing | Show results with:borrowing
  27. [27]
    Crypto Analysis Case Study - 'Three Arrows Capital': PART V
    Aug 25, 2022 · Yet, according to the MAS, 3AC Singapore had first exceeded its allowable AuM between July 2020 and September 2020 (MAS 2022). 3AC Singapore was ...
  28. [28]
    Crypto Analysis Case Study - 'Three Arrows Capital': PART VI
    Aug 26, 2022 · The margin practices it adopted were not conservative in nature, nor did they reflect safe risk management practices, despite the fact that ...
  29. [29]
    Crypto hedge fund Three Arrows Capital is an 'old-fashioned Madoff ...
    Jun 28, 2022 · The crypto world was “brought to its knees” by a Three Arrows Capital trade similar to what sunk Long Term Capital Management in the 1990s, ...
  30. [30]
    The collapse of 3AC (Three Arrows Capital): all you need to know
    Jul 19, 2022 · Three Arrows Capital files for bankruptcy and the founders disappear. On July 1, Three Arrows Capital filed for Chapter 15 bankruptcy in the US ...Missing: establishment | Show results with:establishment
  31. [31]
    https://store.hbr.org/product/three-arrows-capital-a-crypto-hedge-fund-failure-and-operational-due-diligence-lessons/HK1439
  32. [32]
    Analysis: In Three Arrows, a tale of caution - Asia Asset Management
    Oct 4, 2023 · News that Su Zhu, co-founder of bankrupt Singapore-based crypto asset hedge fund Three Arrows Capital, has been arrested while attempting to ...
  33. [33]
    The Fall of Terra: A Timeline of the Meteoric Rise and Crash of UST ...
    Jun 1, 2022 · May 12, 2022. The Terra blockchain officially halts the chain for the first time after LUNA fell sharply in price, threatening the network's ...
  34. [34]
    Anatomy of a Stablecoin's failure: The Terra-Luna case - ScienceDirect
    LUNA and UST dropped from a value of $87 and $1, on 05 May 2022, to less than $0.00005 and $0.2, on 13 May 2022, respectively.
  35. [35]
    Anatomy of a Run: The Terra Luna Crash
    May 22, 2023 · The first signs of the run appeared on May 7, 2022, when two large addresses withdrew 375M UST from Anchor. Blockchain technology enabled ...Missing: timeline | Show results with:timeline
  36. [36]
    Three Arrows Capital Confirms Heavy Losses From LUNA's ...
    Jun 17, 2022 · LUNA lost nearly all of its value over the course of a week, while ecosystem algorithmic stablecoin terraUSD (UST) fell to a few pennies ...
  37. [37]
    Three Arrows Capital crypto hedge fund defaults on Voyager loan
    Jun 27, 2022 · Meanwhile, the overall crypto market cap sits at about $950 billion, down from around $3 trillion at its peak in Nov. 2021. Voyager said it ...Missing: AUM | Show results with:AUM
  38. [38]
    Three Arrows Capital to become latest casualty of crypto crash
    Jun 29, 2022 · Three Arrows Capital (3AC) had been deeply invested in a number of troubled cryptocurrency projects, including Terra, as well as Axie Infinity, ...
  39. [39]
    A Look at the Cryptocurrency Collapse of 2022: Part 1
    Feb 15, 2023 · The cryptocurrency market's capitalization declined from $2.9 trillion in November 2021 to $798 billion at the end of 2022.<|control11|><|separator|>
  40. [40]
    Three Arrows Capital (3AC) faces deadline to repay loans or default
    Jun 27, 2022 · Three Arrows Capital, or 3AC, is facing a liquidity crisis after the collapse of terraUSD, margin calls on its loans and a massive slump in ...
  41. [41]
    Three Arrows Capital (3AC): What Happened? - ZenLedger
    Aug 8, 2022 · Zhu Su and Kyle Davies founded Three Arrows Capital to invest in cryptocurrency projects and assets in 2012. After reaching about $18 billion in ...
  42. [42]
    Crypto hedge fund Three Arrows Capital fails to meet margin calls -FT
    Jun 16, 2022 · Singapore-based crypto hedge fund Three Arrows Capital failed to meet margin calls this past weekend as cryptocurrency prices slid, ...Missing: 3AC | Show results with:3AC
  43. [43]
    BlockFi Says It Liquidated a 'Large Client' Amid 3AC's Margin Calls
    The lender made the move to mitigate risks following fears of market contagion amid Three Arrows' troubles. by Sebastian Sinclair /. June 17, 2022 05:00 am.<|separator|>
  44. [44]
    Russell Crumpler And Christopher Farmer v Three Arrows Capital Lt
    1EASTERN CARIBBEAN SUPREME COURTTERRITORY OF THE VIRGIN ISLANDSIN THE HIGH COURT OF JUSTICECOMMERCIAL DIVISIONCLAIM NO. BVIHCM 2022/0119BETWEEN:RUSSELL ...
  45. [45]
    3AC Bankruptcy - ArentFox Schiff
    On June 27, 2022, 3AC commenced a liquidation proceeding before the BVI High Court of Justice (Commercial Division), which appointed two “Foreign ...
  46. [46]
    Three Arrows Capital Ordered Into Liquidation by BVI Court: Report
    A British Virgin Islands court reportedly ordered cryptocurrency hedge fund firm Three Arrows Capital into liquidation earlier this week.Missing: proceedings | Show results with:proceedings<|separator|>
  47. [47]
    IN RE: THREE ARROWS CAPITAL (2022) - FindLaw Caselaw
    On June 27, 2022, the Debtor commenced a liquidation proceeding before the Eastern Caribbean Supreme Court in the High Court of Justice Virgin Islands ( ...
  48. [48]
    Three Arrows Capital Co-Founder Avoids Contempt and Sanctions ...
    On June 27, 2022, Three Arrows Capital (“3AC”), a crypto hedge fund, commenced liquidation proceedings in the British Virgin Islands and thereafter filed ...Missing: details | Show results with:details
  49. [49]
    [PDF] FTX Memorandum Opinion and Order on 3AC Motion to Amend POC
    Mar 13, 2025 · On June 27, 2022, 3AC commenced liquidation proceedings (the “3AC Liquidation”) in ... Liquidators of Three Arrows Capital Ltd., D.I.. 19797. Page ...Missing: details | Show results with:details
  50. [50]
    [PDF] filed high court - territory of - 3AC Liquidation
    On 29 June 2022, in a hearing where two applications, one commenced by a creditor of 3AC BVI, BVIHC (COM) 2022/0117 and another commenced by 3AC BVI itself,.
  51. [51]
    Court Freezes $1 Billion of Assets of Three Arrows Capital Founders
    Dec 21, 2023 · The worldwide order by a British Virgin Islands court applies to founders Su Zhu, Kyle Davies and Davies' wife, Kelly Chen.
  52. [52]
    BVI court freezes Three Arrows Capital founders' $1 billion in assets
    Dec 21, 2023 · Quick Take. Three Arrows' liquidator Teneo said the court has frozen $1 billion worth of assets of Su Zhu, Kyle Davies and Davies' wife.<|control11|><|separator|>
  53. [53]
    Court Freezes Three Arrows Capital Founders' Assets Worth $1 Billion
    Dec 21, 2023 · A court in Singapore—where 3AC was founded and based—also ordered the freezing of Zhu and Davies' domestic assets a day earlier, Teneo said.
  54. [54]
    $$100m interim distribution order for Three Arrows liquidator | Ogier
    May 1, 2024 · The BVI Court granted the Joint Liquidators of Three Arrows Capital Ltd sanction to make an interim distribution of up to US$100 million to ...
  55. [55]
    Three Arrows founders lose appeal to block crypto disclosure orders
    Jun 25, 2025 · The Singapore Court of Appeal has rejected an attempt by Three Arrows Capital (3AC) founders Zhu Su and Kyle Davies to overturn court orders.Missing: downfall | Show results with:downfall
  56. [56]
    [2025] SGCA 31 - :: eLitigation ::
    1 Three Arrows Capital Ltd (“TA-BVI”) was a large cryptocurrency fund. Following its spectacular collapse in 2022, its liquidators sought orders to compel ...
  57. [57]
    Three Arrows Capital Co-Founder Avoids Contempt and Sanctions ...
    Aug 25, 2023 · On June 27, 2022, Three Arrows Capital (“3AC”), a crypto hedge fund, commenced liquidation proceedings in the British Virgin Islands and
  58. [58]
    Modified Universalism in the Context of Officeholder Sanction ...
    Apr 9, 2024 · The BVI liquidation of Three Arrows Capital Ltd (“3AC”) has produced a number of important decisions on various BVI law issues. Perhaps the ...
  59. [59]
    Three Arrows Capital creditors lent bankrupt fund $3.5 billion, court ...
    Jul 18, 2022 · Collapsed crypto hedge fund Three Arrows Capital (3AC) owed 27 crypto companies $3.5 billion, according to court documents published today ...Missing: administration | Show results with:administration
  60. [60]
    Three Arrows Capital says its founders still not cooperating ... - Reuters
    Dec 3, 2022 · Despite incomplete access to records and accounts, Three Arrows' liquidators have recovered some assets belonging to creditors, including $35 ...Missing: amounts | Show results with:amounts
  61. [61]
    3AC liquidators estimate 46% recovery rate for creditors: Teneo report
    Dec 21, 2023 · Liquidators for Three Arrows Capital are estimating a 45.74% recovery rate for creditors. They say the estate has $563 million of illiquid ...
  62. [62]
    Three Arrows Capital claim against FTX increases to $1.53bn | Ogier
    Apr 9, 2025 · 3AC's claim in FTX's estate increased from an amount FTX asserted was only US$120 million to US$1.53 billion.
  63. [63]
    Summonsing Of An Officer Of A BVI Company For Examination Has ...
    Dec 21, 2023 · The BVI Court has recently released its written reasons for the decision in BVIHC(COM) 2022/0119, Russell Crumpler and Christopher Farmer as Joint Liquidators.
  64. [64]
    A Founder of the Crypto Hedge Fund Three Arrows Capital Is Arrested
    Sep 29, 2023 · Su Zhu, a founder of the cryptocurrency fund Three Arrows Capital, was arrested on Friday in Singapore while trying to leave the country, ...
  65. [65]
    Fugitive founder of 3AC crypto hedge fund arrested in Singapore
    Sep 29, 2023 · Authorities have arrested crypto fugitive Su Zhu, co-founder of the bankrupt digital asset hedge fund Three Arrows Capital.Missing: imprisonment | Show results with:imprisonment
  66. [66]
    Three Arrows Capital co-founder Zhu apprehended in Singapore ...
    Sep 29, 2023 · Zhu will spend four months in prison under an arrest order after he did not comply with an order to cooperate with investigations into Three ...Missing: imprisonment | Show results with:imprisonment
  67. [67]
    Three Arrows Capital co-founder Zhu arrested in Singapore airport ...
    Sep 29, 2023 · Three Arrows Capital co-founder Zhu arrested in Singapore airport, sentenced four months in prison. The hedge fund's other co-founder Kyle ...
  68. [68]
    3AC Co-Founder Zhu Su Arrested at Airport, Receives Four Month ...
    Sep 29, 2023 · Zhu has received a four-month jail sentence for contempt of court. Teneo, 3AC's joint liquidator, tells The Business Times that Zhu has been ...
  69. [69]
    Singapore Says 36-Year-Old Arrested in Response to Query on 3AC
    Oct 4, 2023 · ... Su Zhu being apprehended in Singapore while trying to leave the country last week. The committal order was issued for contempt of court ...Missing: jailed | Show results with:jailed
  70. [70]
    Three Arrows Capital (3AC): Estimated Creditor Recovery at 46%
    Dec 29, 2023 · 3AC debt collection: value of assets equal to $1.16 billion, while recognized creditor claims reach $2.7 billion.<|separator|>
  71. [71]
    Court orders $1B asset freeze for 3AC founders: Liquidator Teneo
    Dec 21, 2023 · The latest court action “results from the ongoing efforts by liquidators Teneo to secure 3AC's assets, seek recoveries from the founders and Ms.
  72. [72]
    3AC liquidators estimate 46% recovery while BVI court freezes $1B
    Dec 22, 2023 · 3AC liquidators estimate 46% recovery while BVI court freezes $1B The joint liquidators of the now-defunct Singaporean crypto hedge fund ...
  73. [73]
    3AC liquidators seek $1.3bn from TerraForm Labs over Luna crash
    Aug 13, 2024 · The British Virgin Islands court appointed liquidators from Teneo, a consulting and advisory firm, to recover funds from the hedge fund's ...
  74. [74]
    Terraform Labs and Three Arrows Capital Reach Settlement on $1.3 ...
    Oct 7, 2025 · This agreement, approved by a U.S. bankruptcy court on October 7, 2025, marks a pivotal moment, classifying 3AC's losses as a "Crypto Loss Claim ...
  75. [75]
    The main update (Three Arrows Capital) : r/Invest_Voyager - Reddit
    Jul 31, 2025 · Three Arrows Capital (3AC): The once-prominent cryptocurrency hedge fund collapsed in 2022 due to liquidity problems and risky bets.<|control11|><|separator|>
  76. [76]
    Court Approves 3AC's $1.53B Claim Against FTX, Setting Up Major ...
    Mar 14, 2025 · A Delaware bankruptcy court allowed Three Arrows Capital to dramatically expand its claim against FTX, further complicating creditor payouts.Missing: administration details
  77. [77]
    FTX Challenges Three Arrows Capital's $1.5 Billion Bankruptcy Claim
    Jun 23, 2025 · FTX's bankruptcy estate is fighting Three Arrows Capital's $1.5 billion claim, arguing the losses were self-inflicted from risky trading.Missing: ongoing litigation
  78. [78]
    Three Arrows Capital accuses FTX of illegally liquidating $1.5B
    Sep 12, 2025 · Three Arrows Capital accuses FTX of illegally liquidating $1.5B of its positions. FTX execs subpoenaed for court testimony.
  79. [79]
    Worldcoin Surges 25.39% Amid Corporate Adoptions, 3AC Liquidation
    Sep 9, 2025 · - Worldcoin (WLD) surged 25.39% as Teneo liquidated 2.25M tokens from 3AC's bankruptcy estate, depositing them on centralized exchanges. - ...
  80. [80]
    Three Arrows Capital, Llc | Reuters
    Liquidators at bankrupt cryptocurrency hedge fund Three Arrows Capital (3AC) are seeking to recover $1.3 billion from the co-founders, a person familiar ...Missing: 2024 | Show results with:2024
  81. [81]
    Su Zhu unveils new OPNX exchange for trading trapped crypto funds
    Feb 9, 2023 · Su Zhu, a co-founder of the collapsed crypto hedge fund Three Arrows Capital, said Thursday that a waitlist is now open at a new marketplace ...
  82. [82]
    OPNX Crypto Exchange Formed by 3AC Founders Goes Live
    Apr 4, 2023 · ... Kyle Davies, the founders of the bankrupt cryptocurrency hedge fund Three Arrows Capital, launched on Tuesday, April 4. The platform's ...
  83. [83]
    Founders of Three Arrows Capital Open New Crypto Exchange OPNX
    Apr 5, 2023 · Su Zhu and Kyle Davies made the announcement on Tuesday, April 4, that the OPNX exchange is now available for business.
  84. [84]
    A Three Arrows Capital Founder Talks About His New Crypto ...
    Mar 24, 2023 · Kyle Davies, who created OPNX with 3AC partner Su Zhu, spoke to CoinDesk about their new venture, created in the wake of losing hedge fund ...
  85. [85]
    Open Exchange Token (OX) Price Chart - Buy and Sell on Phantom
    OPNX officially launched on April 3, 2023, as the world's first crypto and claims exchange. On May 31, 2023, OPNX launched its new token $OX, a new staking ...
  86. [86]
    OX - Open Exchange Token Price - KuCoin
    On May 31, 2023, OPNX launched its new token $OX, a new staking and governance platform called The Herd, and claims trading for Celsius.Missing: details OPN
  87. [87]
    OPNX, the Crypto Exchange From the Founders of Bankrupt Three ...
    Feb 1, 2024 · According to an email addressed to the "OPNX Community," the OPNX.com website "will officially cease operations and shut down in February 2024.".
  88. [88]
    OPNX: Crypto Exchange of 3AC Co-Founders to Shut Down This ...
    Feb 2, 2024 · OPNX, a hybrid platform for trading bankruptcy claims and cryptocurrencies, has confirmed the closure of all its operations by February 14.
  89. [89]
    OPNX exchange to cease operations - Forkast News
    Feb 3, 2024 · The decision to shut down OPNX is a consequence of the ongoing legal proceedings and recovery claims made by the FTX estate, which has been ...
  90. [90]
    OPNX exchange to cease operations - Yahoo Finance
    Feb 2, 2024 · OPNX, founded by Su Zhu, ceases operations due to FTX estate's recovery claims.
  91. [91]
    End of the Line for OPNX, Built by Three Arrows Co-Founders Zhu ...
    Feb 2, 2024 · OPNX will cease all activities next month. This decision comes as co-founders Su Zhu and Kyle Davies grapple with legal troubles.
  92. [92]
    OX.FUN Launches Copy Trading Vaults in Wake of $4 Million ...
    Mar 13, 2024 · OX.FUN launched in January 2024 as a hybrid CEX/DEX perps exchange with Su Zhu and Kyle Davies (former Three Arrows Capital) onboard as advisors ...
  93. [93]
    OX.FUN secured $4.00M in funding on Feb 23, 2024 | CoinCarp
    Feb 23, 2024 · FUN launched in January 2024 as a gamified perps exchange, adopting an innovative dual-token model where traders earn $OX for closing winning ...
  94. [94]
    OX.FUN, a gamified exchange tailored for Meme coin - Gate.com
    Sep 26, 2024 · OX.FUN received a total of $4 million in financing in February 2024, with major investors including GenBlock Capital, Double Peak Group, and ...
  95. [95]
    Crypto Exchange OX.FUN Counters Extortion Allegations Amid ...
    Feb 24, 2025 · FUN has direct connections to Zhu Su, co-founder of failed hedge fund Three Arrows Capita (3AC). Prior reporting from Decrypt in early 2024 ...
  96. [96]
    Su Zhu-backed Ox.Fun dismisses insolvency claims amid JefeDAO ...
    Feb 24, 2025 · OX.FUN, the crypto derivatives exchange backed by Three Arrows Capital co-founder Su Zhu, rejected claims of insolvency in an announcement on Sunday.
  97. [97]
    OX token plummets amid OX FUN extortion and insolvency of former ...
    Feb 24, 2025 · OX.FUN, a crypto derivatives exchange linked to the bankrupt Three Arrows Capital co-founders Su Zhu and Kyle Davies, is under fire following allegations of ...
  98. [98]
    OX.FUN denies insolvency amid JefeDAO dispute and layoffs rumor
    Feb 24, 2025 · OX.FUN, a crypto derivatives exchange, publicly refuted allegations of insolvency that had circulated on social media.
  99. [99]
    Ox.fun Defends OX Token Supply Surge Amid Community Outrage
    May 8, 2025 · Ox.fun increased OX token supply without proper notice, sparking community backlash despite claims of transparency and prior announcement.Missing: controversies | Show results with:controversies
  100. [100]
    Ox.fun's Token Supply Doubles to 9.8 Billion, Sparking ... - AInvest
    May 8, 2025 · Additionally, in February 2025, Ox.fun had some issues with JefeDAO. Although the platform later provided explanations, these incidents have ...Missing: controversies | Show results with:controversies
  101. [101]
    3AC meme coin fund criticized for allocating 84% of tokens to team ...
    Oct 1, 2024 · A meme coin fund launched by Three Arrows Capital has come under fire for allocating around 84% of its tokens to wallets belonging to team members and insiders.
  102. [102]
    Three Arrowz Capitel（ETH） Price (3AC) - CoinCarp
    What Is Three Arrowz Capitel(3AC)?. Three Arrowz Capitel is legal and solvent and was founded by Su in 2024. We also let Kyle trade sometimes if that's ok.Missing: Arrows | Show results with:Arrows
  103. [103]
    Three Arrows Capital's Supposed Spin-Off Goes All in On Pump and ...
    Three Arrowz Capitel is a meme within itself, with its own official $3AC meme coin that trades at a $5 million market capitalization. The duo mostly focuses on ...
  104. [104]
    Three Arrows Capital: For every 100 users holding over 100 USD in ...
    ChainCatcher message, Three Arrowz Capital (3AC) announced its new token burn mechanism for the $3AC token, where every 100 on-chain users holding tokens ...
  105. [105]
    3AC Meme Coin Soars Over 30% As Su Zhu Goes Long - CoinGape
    Oct 14, 2024 · Three Arrows Capital (3AC) co-founder Su Zhu has gone long on 3AC meme coin triggering a sharp increase in price by over 30%.
  106. [106]
    Crypto Trader Made $1.5 Million in Few Hours After Token Surged ...
    Strategic 3AC token trades generated $1.5 million within hours, emphasizing market volatility. · Three Arrows Capital's revival reignited investor interest, ...
  107. [107]
    Failed 3AC Hedge Fund Founders Issue Controversial Memecoin ...
    ... Zhu arrested in Singapore last year for contempt of court for breaching court orders to cooperate. Despite this, the duo have begun hyping the new ERC-20 ...
  108. [108]
    MAS Reprimands Three Arrows Capital for Providing False ...
    Jun 30, 2022 · MAS Reprimands Three Arrows Capital for Providing False Information and Exceeding Assets Under Management Threshold. Singapore, 30 June 2022 ...
  109. [109]
    MAS bans founders of failed crypto hedge fund Three Arrows Capital
    Sep 18, 2023 · Singapore regulator bans Three Arrows Capital founders for nine years. MAS says senior management of fund managers are required to implement ...
  110. [110]
    Crypto hedge fund Three Arrows Capital plunges into liquidation
    Jun 29, 2022 · A slump in cryptocurrency prices, which has seen billions of dollars wiped off the market, has exposed a liquidity crisis at Three Arrows ...
  111. [111]
    Three Arrows Capital Founders Speak After Filing Bankruptcy, Exec ...
    Jul 22, 2022 · ... Su Zhu and Kyle Davies spoke about the firm's problems. Su Zhu (pictured above) claims he “put more of my personal money back in” the ...
  112. [112]
    Three Arrows Capital A Crypto Hedge Fund Failure and Operational ...
    Dec 14, 2024 · ... funds at one point with reported assets under management (AuM) of over USD10bn. 1 As the head of operational due diligence (ODD), Vera-Maria ...
  113. [113]
    The $3.5 Billion GBTC Arbitrage That Destroyed Three Arrows Capital
    Aug 12, 2025 · Three Arrows Capital: Arbitrage at Scale​​ Initially focused on foreign exchange derivatives in emerging markets, they pivoted to crypto as ...Missing: early | Show results with:early
  114. [114]
    MAS issues Prohibition Orders against Three Arrows Capital's Zhu ...
    Sep 14, 2023 · Failure to have in place appropriate risk management framework: TACPL did not have in place a risk management framework to identify, monitor, ...
  115. [115]
    [PDF] Centralization in Decentralized Finance: Systemic Risk in the Crypto ...
    Apr 8, 2025 · In fact, it was revealed after the collapse of 3AC that some crypto intermediaries invested the majority of their contingency reserves in 3AC.
  116. [116]
    A Crypto Hedge Fund Failure and Operational Due Diligence Lessons
    This case explores the downfall of crypto hedge fund Three Arrows Capital (3AC), illustrating the critical role of operational due diligence (ODD).
  117. [117]
    Learnings from 3 Arrows Capital missing the mark [Finance Fridays]
    Sep 9, 2022 · Beware the revolutionaries- 3AC people claimed that this was a cycle to end all cycles. · Ignore the 'valuation' Numbers- This might seem like a ...
  118. [118]
    BlockFi CEO shares lessons learned from liquidating 3AC | The Block
    Aug 31, 2022 · "I have a very fundamental belief that in the type of business that Blockfi is, you can't screw over your clients and still have a business, ...
  119. [119]
    Three Arrows Capital collapse: a lesson in risk, leverage, and data ...
    Sep 9, 2025 · Introducing 0xMarkets: A revolutionary decentralized trading platform, built to enable permissionless access to global financial markets.