Su Zhu co-founded Three Arrows Capital (3AC) — a Singapore-based crypto hedge fund that at peak managed approximately $10 billion in assets — which collapsed in June 2022 following the Terra/Luna crash and aggressive use of borrowed capital, generating over $3.5 billion in creditor claims across lenders including Voyager, BlockFi, Genesis, and Celsius; after a liquidation order was issued by a Singapore court, Zhu initially evaded authorities before being arrested in Singapore in September 2023 and subsequently sentenced to four months in prison for failing to cooperate with liquidators.
Background
Su Zhu (朱溯) was born in China and raised partly in the United States. He studied at Phillips Academy Andover and Columbia University, where he majored in mathematics and economics. After graduating in 2008, he worked as a trader at Credit Suisse and Flow Traders in Tokyo, building expertise in fixed-income and rates trading.
Three Arrows Capital (3AC)
Zhu co-founded 3AC in 2012 in Singapore alongside childhood friend Kyle Davies. The firm initially focused on FX and rates arbitrage but pivoted heavily into crypto around 2017–2018. By 2021, 3AC had become one of the most prominent and well-connected crypto funds, holding positions in Avalanche, Solana, Axie Infinity, Luna, Grayscale Bitcoin Trust (GBTC), and many others.
3AC had a distinctive approach: it held concentrated, heavily leveraged positions across crypto ecosystem tokens, frequently taking seed/early-stage allocations from projects in exchange for promotion. Zhu and Davies were known Twitter personalities whose endorsements could meaningfully move markets.
The Collapse
The Terra/Luna crash in May 2022 — which wiped out approximately $40 billion in market cap in days — was the proximate trigger for 3AC’s collapse. 3AC had significant exposure to LUNA and the Anchor Protocol yield. As the market fell sharply through June 2022 and margin calls accelerated from lenders, 3AC was unable to meet its obligations.
3AC had borrowed heavily from centralized lenders — including Genesis ($2.36B), Voyager ($655M), BlockFi, and others — often on apparently unsecured or under-collateralized terms due to its reputation. When the fund stopped making payments, a cascade of lender collapses followed. Voyager, Celsius, and BlockFi all subsequently failed, partly due to 3AC exposure.
On June 27, 2022, a British Virgin Islands court ordered 3AC’s liquidation. The case was subsequently recognized in U.S. bankruptcy courts.
Arrest and Sentencing
Zhu and Davies initially disappeared from public view after the collapse. Zhu later appeared to be traveling. In September 2023, Zhu was arrested at Changi Airport, Singapore, as he attempted to board a flight. He was sentenced to four months in prison by a Singapore court for failing to cooperate with court-appointed liquidators.
Davies remained wanted by authorities; as of 2025, he had reportedly relocated to Bali, Indonesia.
Post-3AC Ventures
Despite the collapse, Zhu and Davies launched GTX (later rebranded as Open Exchange / OPNX) — a crypto exchange focused on trading creditor claims against bankrupt crypto firms. This drew significant criticism from the industry and former creditors. OPNX ceased operations in February 2024.
Key Dates
- 2012 — Co-founds Three Arrows Capital (3AC) in Singapore.
- 2020–2021 — 3AC grows to ~$10B AUM; major positions in GBTC, LUNA, AVAX, SOL.
- May 2022 — Terra/Luna collapse devastates 3AC’s portfolio.
- June 2022 — 3AC misses margin calls; BVI court orders liquidation; Voyager and others announce exposure.
- September 2023 — Zhu arrested at Singapore Changi Airport; sentenced to four months prison for contempt.
- 2024 — OPNX (creditor claims exchange) ceases operations.
Common Misconceptions
- “3AC was simply unlucky with the market.” — Court filings and creditor reports indicate 3AC misrepresented its financial position to lenders and used borrowed capital in ways that violated loan agreements.
- “Zhu and Davies lost no money personally.” — The personal financial outcomes are partially unclear, but $3.5B+ in creditor claims represent real losses to third parties; court proceedings continue.
Last updated: 2026-04