Meet Su Zhu, the Singaporean entrepreneur and co-founder of crypto hedge fund Three Arrows Capital. This crypto legend managed to lose $3 Billion in 72 Hours. His fund, once hailed as the crown jewel of crypto trading, turned out to be more of a ticking time bomb.
Here's The Main Scenario: He borrows a ton of money, use that to borrow even more, and repeat untilโฆ well, you implode.
Red flags were waving everywhereโ
zero risk management
reckless leverage
and transparency that was practically invisible.
But hey, when everyoneโs busy making money, who has time to notice?
Then came 2022: The LUNA crash followed by $BTC โs nosedive. Thousands of people faced massive losses, while Su Zhu? He vanished. Poof. It wasnโt until September 2023 that he reappeared, now under investigation and staring at a potential 10-year prison sentence.
The moral of the story? Playing with leverage isnโt just risky. Itโs a great way to lose everything and owe a fortune.
