Su Zhu wasn’t just another name in crypto—he was a legend. A man who saw patterns where others saw chaos. Alongside his partner, Kyle Davies, he built Three Arrows Capital (3AC) into a $3 billion hedge fund empire, promising massive returns to those who believed.
His rise was meteoric. Private jets. Multi-million-dollar mansions. Yacht parties with the world’s elite. Zhu’s confidence was unshakable, his bets even bolder. “The future of wealth is here,” he declared. And many believed him.
But in the world of crypto, arrogance is a silent killer.
Behind the scenes, cracks were forming. 3AC had borrowed enormous sums to bet on risky projects—too risky. From Terra’s infamous LUNA to other highly leveraged plays, they were riding a wave that looked unstoppable… until it wasn’t.
In May 2022, Terra’s collapse set off a domino effect.
Billions vaporized overnight.
Investors panicked. Calls to Zhu and his team went unanswered.
The empire was collapsing.
By the third day, 3AC was insolvent. Once hailed as visionaries, Su Zhu and Kyle Davies disappeared from the public eye. Investors, employees, and friends were left holding the pieces of a dream turned nightmare.
The “crypto genius” now faced lawsuits, investigations, and a mugshot that symbolized one of crypto’s greatest collapses.
The Moral:
In any boom, be it crypto or beyond, hype blinds judgment. Red flags are easy to ignore when profits soar.
Su Zhu’s story is a reminder that unchecked ambition and leverage are dangerous bedfellows. Empires can fall as quickly as they rise.
In a market full of promises, always ask:
“Is this too good to be true?”
Because sometimes, it is.
