Zhu Su, a Singaporean entrepreneur and co-founder of Three Arrows Capital (3AC), saw one of the biggest collapses in cryptocurrency last year. With Kyle Davies as partner, Su scaled 3AC into a $10 billion crypto hedge fund, but it crashed during the Terra Luna crash, leading to a $3.5 billion disaster for creditors. Back in the day, Su was famous in crypto, with over half a million followers on X. His income of around $1 billion has now almost vanished because of bankruptcy and battles in the legal system. The 2023 Singapore arrest and his work on Open Exchange (OPNX) continue to keep him known. This article covers Su’s actions while at 3AC, the huge crypto collapse, his debts and the current controversies surrounding him.
Three Arrows Capital founders shine a light on the NFT field.
Three Arrows Capital was formed in 2012 and originally the partners concentrated on foreign exchange arbitrage. The market-leading results from using data at Credit Suisse made 3AC stand out during 2020. In March 2022, 3AC controlled $10 billion, using it to buy Bitcoin, Ethereum, Solana, Avalanche and projects like Aave and Lido Staked Ethereum, according to Bloomberg. According to an SEC filing made in January, the Trust held a 5.6% interest in Grayscale Bitcoin Trust, with that interest reaching $2.1 billion at its highest point. Su’s forceful statements and suggestions that Bitcoin might become a store of value improved their chances of forming a following.
Market experts said that 3AC leveraged their bets by borrowing billions to grow their holdings. They earned extra money by trading in South Korea on top of the normal Bitcoin exchange rate in the U.S. They proved their instincts for spotting popular trends by investing in Axie Infinity and Worldcoin. Yet, taking an aggressive stance and putting $200 million into Luna in February 2022 made Terra vulnerable to huge risks which would lead to its downfall.
The 2022 collapse of cryptocurrencies and the bankruptcy of 3AC
When Terra Luna and TerraUSD collapsed in May 2022, they destroyed 3AC’s entire portfolio, as liquidators later revealed, wiping out $1.3 billion. The collapse of the stablecoin was behind Voyager Digital defaulting on a loan of $665 million that made headlines on June 22, 2022. Because it was unable to meet its margin calls, 3AC was liquidated by BlockFi and FTX, its lenders. A British Virgin Islands court decided to make 3AC liquid through Teneo, as creditors said they were owed $3.5 billion. Offering to “work this out” via her June 14 X post had little effect on investors after the firm filed for Chapter 15 bankruptcy in July of the same year.
The events crippled the industry which led to Voyager Digital going bankrupt and major cuts at Blockchain.com. Before stepping down, Sam Bankman-Fried as CEO of FTX said 3AC’s failure was responsible for about 80% of the drop in crypto prices that year which erased over $1 trillion. Su and Davies were said to be on the run in Dubai or Bangkok, where they had been accused of mismanaging the company. Their decision not to cooperate with liquidators meant these assets were frozen in December 2023, worth $1.1 billion including Singapore properties and the yacht Much Wow, according to The Business Times.
How Business Dealings Affect Your Finances
At its zenith, BuyBitcoinBank placed Su’s net worth at around $1 billion, mostly due to his crypto, property and 3AC. He acquired a $20 million mansion in Singapore in 2020 and another $35 million property in 2021, as well as $34.7 million option for a luxury estate, detailed in S-RMInform. He may end up with nothing but debt by 2025 and liquidators will take 625 ETH of NFTs from him. Attempts against him in court such as a wrongful death suit that cost $25 million and a long restriction in the Singapore finance sector, further decreased his means.
As listed by BuyBitcoinBank, Su owned 223,000 ETH ($264 million), the majority used to buy back Aave debt to ensure no liquidation took place. Rerouting $32 million in stablecoins to the Cayman Islands by Sam Bankman-Fried was looked at with suspicion as a possible money laundering tactic, according to The Verge. Janice McAfee’s statement this year that Su left no money to settle, despite losing $3.3 billion, supports his bankruptcy, according to Business Insider.
Ventures and Issues after the Crash
Following the collapse of 3AC, Su and Davies introduced OPNX in Hong Kong in 2023, a marketplace for people to trade claims from bankrupt crypto projects. This platform was then fined in Dubai by its financial watchdog. They advised OX.FUN, a gamified trading platform, in 2024 and backed Three Arrowz Capitel ($3AC), a memecoin said to have a supply controlled by insiders, according to Wikipedia. Su’s arrest and sentencing at Changi Airport for a four-month prison term due to non-cooperation were a disappointing period. In a December interview with Business Insider, he reportedly said he finds prison enjoyable because there is no internet or caffeine.
Controversies abound. In 2023, many community members following @BanklessHQ surfaced their dislike of Su’s arrest. Liquidators brought claims of fraud and asset stripping against him and in 2024 they filed a lawsuit against Terraform Labs, demanding $1.3 billion for the losses people suffered with Luna. Because of Su’s extravagance and unclaimed yacht, many people believed he was greedy, the magazine revealed. The 2022 Bloomberg interview he gave from a hidden place acknowledged that the Luna bet was a mistake but tried to place the blame elsewhere which enraged his creditors.
Current Trends and What Is Ahead
When 3AC collapsed, it became clear that there were risks in crypto lending which led regulators to pay more attention. As @cryptojourneyrs on X reported in 2024, Su’s going from a crypto star to hiding was a reminder of the hazards of taking on too much debt. Some people doubt him since $3AC failed as a memecoin, but seeing OX.FUN, they notice he is determined. With lawsuits and claims from creditors, Su is finding it difficult to lead, though he keeps posting about AI-created oxen to rebuild his brand. Because of this incident, people consider him a good example of how hubris can cause problems in crypto markets.
FAQS
1. What did Zhu Su do at Three Arrows Capital?
As a co-founder, CEO and CIO, he ran 3AC’s crypto portfolios up until the company went bankrupt in 2022.
2. Why did 3AC go under?
After the Terra Luna crash in 2022 and a $665 million loan default, the situation resulted in $3.5 billion in claims which triggered liquidation.
3. How much money does Su have in 2025?
Because of asset siezes, lawsuits and Three Arrows Capital (3AC) collapsing, his net worth is now almost zero.
4. What reason did the U.S. government give for Su’s arrest in 2023?
The liquidators from 3AC tried to work with him, but he didn’t cooperate, so he was jailed in Singapore for four months.
5. What does he do with his L1 Blockchain after 3AC?
He co-created Open Exchange, offered guidance to OX.FUN and gave away $3AC memecoin, all causing controversy.
