The currency circle is shaken again!
On the afternoon of September 29, a Singaporean court issued an arrest order for Su Zhu, the founder of Three Arrows Capital, and he was arrested at Changi Airport.
It is reported that the joint liquidators applied for and obtained an arrest order against Su Zhu on September 25 because Su Zhu deliberately failed to comply with the court order, which required him to cooperate with the international liquidators to complete the investigation. , and is responsible for his actions as one of the founders of Three Arrows Capital and its former investment manager.
The cryptocurrency market has always been an area where risks and opportunities coexist, attracting the participation of many investors and entrepreneurs.
News of the arrest of Zhu Su, the co-founder of the once-famous crypto hedge fund Three Arrows Capital, at Changi Airport. This is not only a financial crisis, but also a story full of lessons...
First, let’s understand what Three Arrows Capital is. Three Arrows Capital is a Singapore-based crypto hedge fund, also known as 3AC or TAC. It was founded in 2012 by Zhu Su and Kyle Davies. Both founders are Singapore citizens. They studied at Columbia University in the United States and worked at Credit Suisse. Initially, Three Arrows Capital focused on arbitrage trading of foreign exchange derivatives, but later moved into the cryptocurrency space. This fund was once one of the largest and most successful hedge funds in the crypto space, managing a huge amount of crypto assets.
However, why did Sanjian Capital finally collapse?
It all stems from the wild swings in the crypto market. The cryptocurrency market experienced a broad decline in the first half of 2022, causing most tokens to plummet in market capitalization.
Among them, the token LUNA, which Three Arrows Capital invested in and actively promoted, collapsed in May 2022, and its market value fell to close to zero. Because the fund conducted a large number of leveraged transactions and risky investments, it was unable to repay the borrowed money, resulting in huge losses. This left Sanjian Capital facing huge debts, triggering bankruptcy.
What is even more shocking is that Zhu Su, the founder of Three Arrows Capital, was recently arrested at Changi Airport, becoming the latest development in this incident. Zhu Su was arrested while trying to leave Singapore and sentenced to four months in prison.
At the same time, his partner Davis also received the same order, but Davis' whereabouts are currently unknown.
Teneo, the liquidator, claimed that Zhu Su and Davis accumulated huge losses when the company was already bankrupt and demanded that they return the funds.
This incident not only had a huge impact on Three Arrows Capital and its founders, but also served as a warning to the entire crypto market.
Although the cryptocurrency market is full of potential, it is also accompanied by extremely high risks and uncertainties. Investors and entrepreneurs should remain cautious, abide by laws and regulations, and do not ignore risks for the sake of temporary profits, let alone harm the interests of others.
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