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Three Arrows Capital

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389:, where Zhu tried surfing, and Davies dabbled in painting. Since 2022, Zhu and his family relocated to Singapore, where they lived in a "good-class bungalow" with a "permaculture farm — an elaborate system of lakes and gardens meant to replicate self-sustaining ecosystems in nature. It's home to ducks, chickens and numerous types of dragonflies." Davies was described as having moved on from Three Arrows Capital and quoted as saying, "I really spent so much time meditating in Bali that I'm really just pretty zenned out." 29: 172:. The company borrowed billions of dollars to fund its trading, and according to July 2022 bankruptcy filings, faces $ 3.5 billion in creditors' claims. The fund appears to have lost in excess of $ 3 billion over 2021 and 2022, making its collapse one of the largest hedge-fund trading losses of all time. 192:
for brief spells before setting up Three Arrows in 2012. In its early years, the company was focused on arbitraging emerging-market foreign-exchange derivatives and engaged in the practice of finding mispriced derivatives on electronic platforms and keeping them even if banks asked to cancel or amend
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The fund's last public statement claimed a net asset value of $ 18 billion. Blockchain analytics firm Nansen estimated in March 2022 that Three Arrows managed about $ 10 billion in cryptocurrency assets, although there is speculation that most of their visible assets were sourced by uncollateralized
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Cryptocurrencies experienced broad declines in the first half of 2022, with most tokens losing more than 50% of their market valuation. LUNA, in which Three Arrows had invested and Su Zhu actively promoted on Twitter, collapsed to near zero in May 2022. The spread between Grayscale GBTC trust unit
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In late 2022, Zhu and Davies started another cryptocurrency-related venture called Open Exchange based in Hong Kong to some negative reactions from financial institutions and investors. In June 2023, Open Exchange began offering its own cryptocurrency, and Davies commented on Twitter that "I'm
417:, while trying to leave the country. Zhu was arrested pursuant to committal orders which sentenced him to four months in prison for failing to cooperate with the company's liquidators. Davies' location remained unknown, but he is subject to the same committal order as Zhu. 193:
the trades. This strategy, however, resulted in the fund only earning fractions of a cent for each dollar that was traded. This practice continued until banks started to cut off the fund from that market in 2017, which began the company's shift to cryptocurrencies.
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in assets under management, a condition of its August 2013 fund management company registration. Three Arrows was further reprimanded for providing false or misleading information to MAS, and failing to notify MAS of changes to directorships or shareholdings.
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According to court liquidation papers, Davies and Zhu have not been cooperating in the liquidation process of Three Arrows Capital, and their whereabouts were unknown as of 8 July 2022. Three Arrows Capital owes 27 creditors a total of US$ 3.5 billion.
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The firm's founders amassed a large following on Twitter with cryptocurrency-related topics. Su Zhu had more than 500,000 followers shortly before the fund failed. The firm backed projects including Aave, Avalanche, Luna,
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to protect its US assets from creditors. The firm's CEO, Stephen Ehrlich, attributed the decision in part due to Three Arrows' inability to pay back its loan from Voyager.
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to determine whether or not the firm had misled its investors over the status of its balance sheet, and if the firm should have registered with both agencies.
1344: 555: 1396: 1801: 653: 1207: 738: 583: 1596: 1469: 466: 225:, Three Arrows owned almost 39 million units of Grayscale Bitcoin Trust (GBTC) at the end of 2020. The firm invested approximately $ 200 million in 1533: 1444: 351:
The company's collapse is believed to be partially responsible for the bankruptcy and failure of the crypto lender Voyager Digital and layoffs at
344:'s CEO Michael Moro announced on Twitter that Genesis Trading had incurred substantial losses from loans to Three Arrows and that its parent firm 250:
prices and spot Bitcoin prices widened throughout 2021 and 2022, with the trust units trading at a 34% discount to the trust NAV on 17 June 2022.
1103: 710: 885:"WOO Network raises $ 30M Series A from Three Arrows Capital, PSP Soteria Ventures, Gate Ventures, QCP Capital, Crypto.com Capital, and others" 1771: 911: 1290: 1025: 1720: 1370: 439: 1628: 374:
In an interview with Bloomberg held at an "undisclosed location" in July 2022, Zhu and Davies remarked that they plan to move to the
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that caused the bankruptcy of other crypto firms or led those firms to freeze assets during the 2022 cryptocurrency crash.
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from Singapore. However, on June 24, 2022, Dubai's regulator confirmed that Three Arrows was not registered with the
273:(MAS) said it had reprimanded Three Arrows for breaching its allowed threshold of having no more than $ 250 million 1185: 807:"Three Arrows Capital's Zhu Su speaks out after $ 400 million liquidation due to Celsius and Terra's LUNA fiasco" 270: 499: 331:. The Joint Liquidators are Russell Crumpler and Christopher Farmer, both Senior Managing Directors of Teneo. 1563: 392:
In June 2023, Three Arrows liquidators said they were seeking to recover $ 1.3 billion from Davies and Zhu.
218: 1786: 912:"A major crypto hedge fund is wobbling as $ 10 billion Three Arrows Capital sees a spate of liquidations" 348:
has assumed certain liabilities of Genesis related to Three Arrows to ensure adequate operating capital.
214: 1666:"Three Arrows Capital co-founder Zhu arrested in Singapore airport, sentenced four months in prison" 1078: 1233: 769: 378:, a country that does not have extradition agreements with either Singapore or the United States. 944: 530: 169: 78: 1131: 1445:"Crypto hedge fund's collapse leaves behind angry lenders and a $ 150 million "Much Wow" yacht" 345: 324: 281:
In October 2022, it was reported that Three Arrows Capital was under investigation by both the
161: 1266:"Crypto Broker Voyager Digital Says Three Arrows Capital Hasn't Repaid $ 666 Million in Loans" 1422: 970:"Some investors got rich before a popular stablecoin imploded, erasing $ 60 billion in value" 1796: 375: 8: 1295: 630: 185: 401:
getting early 3AC vibes all over again... Nothing compares to the energy of a startup."
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reported that Three Arrows had failed to repay money lent from cryptocurrency broker
274: 181: 1238: 774: 658: 495:"Singapore-based crypto hedge fund's cryptic tweet fuels speculation over losses" 312: 299: 39: 1345:"Three Arrows liquidators asks U.S. court to force crypto founders to cooperate" 526:"Battered Crypto Hedge Fund Three Arrows Capital Considers Asset Sales, Bailout" 1601: 1528: 1474: 1108: 1002: 743: 588: 560: 471: 410: 352: 234: 154: 1053:"Why cryptocurrencies have gone from the next hot thing to a full-on meltdown" 1765: 1732: 1640: 1575: 654:"Founders of $ 10 Billion Crypto Hedge Fund Have 'Ghosted' After Bets Go Bad" 364: 356: 189: 1026:"Dubai regulator says 3AC does not have a license to operate in the emirate" 28: 715: 1498:"3AC-BVI-Liquidation-Recognition-1st-Affidavit-of-Russell-Crumpler-Filed" 1291:"Crypto hedge fund Three Arrows Capital in default on $ 665 million loan" 556:"Ethereum ($ ETH), Not Bitcoin ($ BTC), Favorite for These Crypto Whales" 304: 106: 1524:"Three Arrows Founders Break Silence Over Collapse of Crypto Hedge Fund" 1397:"Cryptocurrency broker Voyager Digital files for bankruptcy protection" 1208:"US Regulators Probing Bankrupt Crypto Hedge Fund Three Arrows Capital" 222: 157: 110: 49: 1721:"A Founder of the Crypto Hedge Fund Three Arrows Capital Is Arrested" 1470:"Three Arrows Founders' Whereabouts Are Unknown, Foiling Liquidators" 711:"Cryptocurrency 'bloodbath' threatens multibillion-dollar hedge fund" 414: 202: 150: 120: 323:
loan worth more than $ 665 million. On the same day, a court in the
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United States District Court for the Northern District of California
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reported that Three Arrows was planning to move its headquarters to
584:"Three Arrows Liquidators Seize $ 40 Million as Asset Probe Widens" 444: 385:, during the June 2022 liquidation process, Zhu and Davies were in 320: 210: 1756: 1597:"Three Arrows Liquidators Seek $ 1.3 Billion From Fund's Founders" 1234:"Crypto hedge fund Three Arrows fails to meet lender margin calls" 998:"Three Arrows Capital Moving Headquarters to Dubai From Singapore" 858:"Three Arrows Capital Invests In BlockFi After Its Series B Round" 130: 440:"Crypto hedge fund Three Arrows Capital plunges into liquidation" 316: 206: 160:
which was ordered to liquidate on 27 June 2022 by a court in the
1629:"A Crypto Hedge Fund Imploded. The Comeback Isn't Going So Well" 467:"Crypto Hedge Fund Three Arrows Files For Chapter 15 Bankruptcy" 889: 1627:
Yu, Elaine; Soon, Weilun; Osipovich, Alexander (19 May 2023).
1319:"Crypto Hedge Fund Three Arrows Ordered by Court to Liquidate" 1317:
Ng, Serena; Ostroff, Caitlin; Ge Huang, Vicky (29 June 2022).
1104:"Terraform Again Halts Blockchain Behind UST Stablecoin, Luna" 832: 328: 327:
ordered the liquidation of Three Arrows Capital, overseen by
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Ossinger, Joanna; Shen, Muyao; Yang, Yueqi (22 July 2022).
974: 770:"Silicon Valley bets on crypto projects to disrupt finance" 386: 739:"Crypto Hedge Fund's Tweet Fuels Speculation Over Losses" 686:"The Crypto Geniuses Who Vaporized a Trillion Dollars" 1371:"Crypto hedge fund Three Arrows files for bankruptcy" 266:
on 17 June 2022. This case has since been dismissed.
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Companies that have filed for Chapter 15 bankruptcy
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Financial services companies disestablished in 2022
1564:"Their Crypto Company Collapsed. They Went to Bali" 262:, was filed against Three Arrows and others in the 303:reported that Three Arrows had failed to meet its 253: 1316: 1792:Financial services companies established in 2012 1763: 1521: 1626: 1077:Driebusch, Corrie; Vigna, Paul (18 June 2022). 221:, and WOO Network. According to a January 2021 1076: 940:"What Happened to TerraUSD's Bitcoin Reserves" 519: 517: 1561: 434: 432: 430: 1153:"Patterson v. TerraForm Labs Pte Ltd. et al" 409:In late September 2023, Zhu was arrested at 1659: 1657: 1257: 833:"Three Arrows Capital Invests In Worldcoin" 801: 799: 797: 795: 793: 679: 677: 514: 260:Patterson v. TerraForm Labs Pte Ltd. et al. 1692:"Crypto Fugitive Su Zhu Has Been Arrested" 427: 197:borrowing from various lending platforms. 27: 1802:Singaporean companies established in 2012 1132:"YCharts GBTC Discount or Premium to NAV" 459: 1689: 1664:Melinek, Jacquelyn (29 September 2023). 1654: 1175: 1173: 790: 683: 674: 626:"Another Big Crypto Player Just Blew Up" 1663: 937: 334:On 2 July 2022, Three Arrows filed for 283:U.S. Securities and Exchange Commission 1764: 1342: 1714: 1712: 1557: 1555: 1553: 1551: 1420: 1394: 1263: 1170: 1562:Yaffe-Bellany, David (9 June 2023). 1442: 1368: 1050: 962: 287:Consumer Financial Protection Bureau 180:Kyle Davies and Su Zhu first met at 16:Liquidated cryptocurrency hedge fund 1772:2022 disestablishments in Singapore 1690:Wieczner, Jen (29 September 2023). 404: 13: 1718: 1709: 1548: 523: 244:Dubai Financial Services Authority 14: 1813: 1750: 1343:Knauth, Dietrich (11 July 2022). 363:blamed the company for causing a 1264:Huang, Vicky Ge (22 June 2022). 938:Ostroff, Caitlin (24 May 2022). 684:Wieczner, Jen (15 August 2022). 1719:Lu, Yiwen (29 September 2023). 1683: 1620: 1589: 1515: 1490: 1462: 1436: 1414: 1388: 1362: 1336: 1310: 1283: 1226: 1200: 1186:Monetary Authority of Singapore 1145: 1124: 1096: 1070: 1044: 1018: 990: 931: 904: 877: 850: 825: 762: 731: 703: 271:Monetary Authority of Singapore 254:Licensing and regulatory issues 646: 618: 604: 576: 548: 500:The Business Times (Singapore) 487: 292: 1: 1443:Roth, Emma (15 August 2022). 420: 1051:Gura, David (17 June 2022). 164:. It was founded in 2012 by 7: 524:Ng, Serena (17 June 2022). 61:; 12 years ago 10: 1818: 1421:Milmo, Dan (6 July 2022). 1395:Milmo, Dan (6 July 2022). 1369:Roth, Emma (2 July 2022). 1079:"The Crypto Party Is Over" 175: 229:tokens in February 2022. 126: 116: 102: 84: 73: 55: 45: 35: 26: 1423:"Michael Moro 3AC Tweet" 1616:(subscription required) 1253:(subscription required) 958:(subscription required) 945:The Wall Street Journal 758:(subscription required) 544:(subscription required) 531:The Wall Street Journal 395: 309:The Wall Street Journal 346:Digital Currency Group 325:British Virgin Islands 184:, and both studied at 162:British Virgin Islands 131:www.threearrowscap.com 336:Chapter 15 bankruptcy 297:On 16 June 2022, the 269:On 30 June 2022, the 90:; 2 years ago 837:Worldcoin About Page 376:United Arab Emirates 139:Three Arrows Capital 22:Three Arrows Capital 1633:Wall Street Journal 1323:Wall Street Journal 1296:The Washington Post 1270:Wall Street Journal 1083:Wall Street Journal 188:before working for 186:Columbia University 23: 1787:Corporate scandals 1725:The New York Times 1568:The New York Times 1536:on 31 October 2022 88:June 27, 2022 21: 1214:. 17 October 2022 614:. 15 August 2022. 381:According to the 361:Sam Bankman-Fried 275:Singapore dollars 136: 135: 1809: 1757:Official website 1744: 1743: 1741: 1739: 1716: 1707: 1706: 1704: 1702: 1687: 1681: 1680: 1678: 1676: 1661: 1652: 1651: 1649: 1647: 1624: 1618: 1617: 1614: 1612: 1610: 1593: 1587: 1586: 1584: 1582: 1559: 1546: 1545: 1543: 1541: 1532:. 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On 22 June, 294: 291: 255: 252: 232:In April 2022 177: 174: 155:cryptocurrency 134: 133: 128: 124: 123: 118: 114: 113: 104: 100: 99: 86: 82: 81: 75: 71: 70: 57: 53: 52: 47: 43: 42: 37: 33: 32: 15: 9: 6: 4: 3: 2: 1814: 1803: 1800: 1798: 1795: 1793: 1790: 1788: 1785: 1783: 1780: 1778: 1775: 1773: 1770: 1769: 1767: 1758: 1755: 1754: 1734: 1730: 1726: 1722: 1715: 1713: 1697: 1696:Intelligencer 1693: 1686: 1671: 1667: 1660: 1658: 1642: 1638: 1634: 1630: 1623: 1604: 1603: 1598: 1592: 1577: 1573: 1569: 1565: 1558: 1556: 1554: 1552: 1535: 1531: 1530: 1525: 1518: 1499: 1493: 1477: 1476: 1471: 1465: 1450: 1446: 1439: 1424: 1417: 1402: 1398: 1391: 1376: 1372: 1365: 1350: 1346: 1339: 1324: 1320: 1313: 1298: 1297: 1292: 1286: 1271: 1267: 1260: 1241: 1240: 1235: 1229: 1213: 1212:Bloomberg.com 1209: 1203: 1188: 1187: 1182: 1176: 1174: 1158: 1154: 1148: 1133: 1127: 1112:. 13 May 2022 1111: 1110: 1105: 1099: 1084: 1080: 1073: 1058: 1054: 1047: 1031: 1030:The Times Hub 1027: 1021: 1005: 1004: 999: 993: 978:. 29 May 2022 977: 976: 971: 965: 947: 946: 941: 934: 919: 918: 913: 907: 892: 891: 886: 880: 865: 864: 859: 853: 838: 834: 828: 812: 808: 802: 800: 798: 796: 794: 778:. 3 June 2021 777: 776: 771: 765: 746: 745: 740: 734: 718: 717: 712: 706: 691: 690:Intelligencer 687: 680: 678: 661: 660: 655: 649: 633: 632: 627: 621: 613: 607: 591: 590: 585: 579: 564:. 25 May 2021 563: 562: 557: 551: 533: 532: 527: 520: 518: 502: 501: 496: 490: 475:. 1 July 2022 474: 473: 468: 462: 447: 446: 441: 435: 433: 431: 426: 418: 416: 412: 402: 393: 390: 388: 384: 379: 377: 372: 368: 366: 365:ripple effect 362: 358: 354: 349: 347: 343: 339: 337: 332: 330: 326: 322: 318: 314: 310: 306: 302: 301: 290: 288: 284: 279: 276: 272: 267: 265: 261: 251: 247: 245: 241: 237: 236: 230: 228: 224: 220: 216: 212: 208: 204: 198: 194: 191: 190:Credit Suisse 187: 183: 173: 171: 167: 163: 159: 156: 152: 148: 144: 140: 132: 129: 125: 122: 119: 115: 112: 108: 105: 101: 87: 83: 80: 77:Kyle Davies, 76: 72: 58: 54: 51: 48: 44: 41: 38: 34: 30: 25: 19: 1738:30 September 1736:. 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Index


Private
Hedge fund
Su Zhu
Liquidation
Bankruptcy
Singapore
www.threearrowscap.com
Singapore
cryptocurrency
hedge fund
British Virgin Islands
Su Zhu
Phillips Academy
Columbia University
Credit Suisse
Worldcoin
BlockFi
Ethereum
Polkadot
Solana
SEC filing
LUNA
Bloomberg
Dubai
Dubai Financial Services Authority
United States District Court for the Northern District of California
Monetary Authority of Singapore
Singapore dollars
U.S. Securities and Exchange Commission

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