Kyle Davies and Su Zhu first met at Phillips Academy and both studied at Columbia University before working for Credit Suisse for brief spells, prior to setting up Three Arrows in 2012. Three Arrows Capital is a Singapore-based hedge fund. Zhus and Daviess public personae became even more extreme; their tweets were increasingly pompous, and social acquaintances say they didnt bother to hide their condescension toward friends from the past and less wealthy contemporaries. Su Zhu had more than 500,000 followers shortly before the fund failed. The state has a near-total abortion ban, and now activists and GOP officials are fighting an exemption for physician-defined medical emergencies. Since launching in 2012, Su Zhu and Kyle Davies' Three Arrows Capital grew to become one of crypto's largest and most respected hedge funds. Zhu, who turns 35 in April, was born in China, moved to the U.S. at age 6, and has been a citizen of Singapore since 2016. Since then, the hedge fund has faced challenges in its bankruptcy process, in part due . How Crypto Hedge Fund Three Arrows Capital Fell Apart (3AC Three Arrows Capital has made 2 diversity investments. They were the bread and butter of Three Arrows Capital, which told investors it practiced low-risk strategies designed to make money in both bullish and bearish times. One famous trading strategy was known as the kimchee premium it involved buying bitcoin in, say, the U.S. or China and selling it at a higher price in South Korea, where the exchanges were more tightly regulated, resulting in higher prices. We went to high school together, we went to college together, and we got our first job together. (In June, the SEC rejected GBTCs application.). Despite the environmental spotlight Musks tweet placed on bitcoin, Davies said he doesnt believe that those concerns apply across cryptocurrency trading as a whole. Crypto Hedge Fund Three Arrows Capital Considers Asset Sales, Bailout Was not that big as part of portfolio holdings anyway, 3ACs top trader, Edward Zhao, wrote back, according to messages made public by Blockchain.com. With their hedge fund in the midst of chaotic liquidation proceedings, Zhu and Davies are currently believed to be in hiding. In a letter sent to 3AC, DRB Panama terminated its loan agreement with the hedge fund and demanded immediate repayment of $80 million. However, three of the most infamous figures of crypto in 2022 were based in Singapore: Kyle Davies and Su Zhu from 3AC and Do Kwon from Terraform Labs. According to friends, Zhu had a conscious plan to become a Twitter celebrity: It entailed tweeting a lot, pandering to the crypto masses with outrageously bullish prognostications, racking up a huge number of followers, and, in turn, becoming an apex predator on Crypto Twitter, profiting at the expense of everyone else. This email will be used to sign into all New York sites. [40] Three Arrows Capital owes 27 creditors a total of US$3.5 billion.[41]. The Crypto Billionaire is in early talks to buy S$49m or $36 million worth GCB. Kyle Davies and Su Zhu started Three Arrows Capital at the kitchen table of their apartment in 2012. It was against this backdrop that Three Arrows switched its focus to crypto, starting to invest at such an opportune time that Zhu was often credited (which is to say, he took credit) for calling the bottom of the cycle. Davies and his co-founder Su Zhu founded the startup in 2012 in a small apartment and made it one of the worlds largest crypto portfolios in 2021. Jamie Reeds shocking account of a clinic mistreating children went viral. February Overview - jkl-capital.medium.com The firm, . The city threw out a Democratic mayor for the first time in decades. Matt Walsh, a co-founder of crypto-focused Castle Island Ventures, couldnt understand why a multibillion-dollar fund like Three Arrows would bother with onboarding such a relatively tiny increment of money; it seemed desperate. It represents the beginning of a fascinating journey, the yacht broker said in an announcement of the sale last year, saying it looked forward to witnessing many happy moments aboard. The name the buyers had in mind was cleverly chosen an inside joke nodding to the cryptocurrency dogecoin that would both thrill their social-media acolytes and be intelligible to all the pathetic, poor no coiners out there: Much Wow. [18] The firm invested approximately $200 million in LUNA tokens in February 2022. Around the same time, Zhu and Davies were making plans to abandon Singapore. Others had lent them billions more, much of it in bitcoin and ethereum. Collapsed crypto fund co-founder hits back at liquidators after The transformation of value in the digital age. Being early and low conviction is gross tbh. And: As the supercycle continues, buttsore mainstream media will try to talk about how the early whales own everything. Su Zhu (on the right) playing chess. Coupled with its recent tightened rules on crypto trading, Singapore is slowly losing pace. Crypto companies from New York to Singapore were the direct victims of Three Arrows. Three Arrows, it turned out, was attempting to flip a portion of its investment at a steep markup, essentially netting the fund an enormous kickback. Cointelegraph reported that the firm was considering various legal and financial solutions on June 17 and had hired advisers to help it navigate those options. Its all about not looking soft on crime. Well its just to own Ethereum. Earlier this year, Davies tweeted that it doesnt matter specifically what a VC invests in, more fiat in the system is good for the industry. Says Chris Burniske, a founding partner of VC firm Placeholder, They were clearly spray and pray., A number of investors remember having their first sense that something might be off with Three Arrows in 2019. Crypto hedge fund Three Arrows Capital files for bankruptcy - TechCrunch Su Zhu and Kyle Davies turned 3AC into the most important hedge fund in crypto, but they bet everything on prices only going up. Reports put 3ACs assets at some $10 billion at the time, citing Nansen (though Nansens CEO now clarifies that much of the sum was likely borrowed). Three Arrows was founded in 2012 by Su Zhu, a onetime securities trader at Deutsche Bank, and Kyle Davies, a former trader at Credit Suisse, according to their LinkedIn Accounts. Owing such characters large sums of money could explain why Zhu and Davies have gone into hiding. In response, Three Arrows seems to have decided to ramp up the riskiness of its investments in hopes of scoring big and getting the firm back on a solid footing. That same month, friends say, Zhu and Davies purchased two villas for roughly $30 million combined, one next to the other on Dubais Crystal Lagoon in District One, a manmade aquamarine oasis larger than any other in the world. 2, the Singapore-based Three Arrows Capital filed for a bankruptcy petition. Although Teneo took the documents down later that day, they had already been saved and, The 3AC bankruptcy and liquidation has been ongoing since, Ironically, Crumpler writes that mid-June, when co-founder Su Zhu sent his now infamous tweet saying that 3AC was , in the process of communicating with relevant parties. Three Arrows Capital is a cryptocurrency-based hedge fund. In Defense of the Talkative Trump Grand Juror. Biden Dares Republicans to Go After Obamacare and Medicaid. Lawyers in charge of liquidating Three Arrows Capital's British Virgin Island fund said the founders, Zhu Su and Kyle Davies, have not been involved in the proceedings, despite lawyers. He is a regular contributor to CNBC, Bloomberg, and other financial news outlets. Three Arrows Capital Founders Ordered by Liquidators on Twitter to But there was another snag: Three Arrows owned the Deribit stake with other investors, who refused to sign off on using their shares as collateral. School friends started their own firm, now they are among the world's 3AC had invested in a crypto options exchange called Deribit, and it was selling off a stake; the term sheet set the value of Deribit at $700 million. Sign uphere. Its shares were worth about $2.1 billion in April 2021. Your weekly wrap of Web3 news and trends. The court documents revealed that 3AC owes its creditors a total of $3.5 billion to 25 different companies, including $2.3 billion to Genesis, a crypto trading and lending company under the Digital Currency Group umbrella. 2023 Vox Media, LLC. Crypto hedge fund Three Arrows Capital plunges into liquidation - Sky News 2023 BuyBitcoinBank, All rights reserved. Pretty much everyone in that world, from the millions of small-scale crypto holders to industry employees and investors, has watched in shock and dismay as Three Arrows Capital, once perhaps the most highly regarded investment fund in a burgeoning global financial sector, collapsed in excruciating and embarrassing fashion. Because of its gold standard reputation, as one trader put it, some lenders didnt ask for audited financial statements or any documents at all. Is Multibillion-Dollar Hedge Fund Three Arrows Next to - Decrypt Three Arrows' Su Zhu Had $1.4 Billion Stake in Firm: Court - Decrypt S'porean crypto billionaire Zhu Su in early talks to buy a GCB worth S Su and his Three Arrows Capital investment partner Kyle Davies turned a modest 8 figure fund into a 10+ figure fund that significantly multiplied both their net worth's. We suspect that Three Arrows attempted to pledge some pieces of collateral to many people at once, says Bankman-Fried, the CEO of FTX. 6 months ago, Zhu Su of Three Arrow Capital claimed 100k ETH - reddit During the pandemic, as the Federal Reserve pumped money into the economy and the U.S. government sent out stimulus checks, cryptocurrency markets rose for months on end.