Three Arrows Capital (3AC)
A Singapore-based crypto hedge fund, once reportedly managing ~$10B, that collapsed in June 2022 amid heavy leverage and the Terra/LUNA crash. A BVI court ordered it liquidated; Singapore's MAS banned founders Su Zhu and Kyle Davies for nine years.
Also known as: Three Arrows Capital, 3AC, Su Zhu, Kyle Davies
Summary
Three Arrows Capital (3AC) was a Singapore-based cryptocurrency hedge fund founded by Su Zhu and Kyle Davies that, at its peak, reportedly managed around $10 billion in assets. It collapsed in June 2022 after large, highly leveraged bets and the Terra/LUNA crash left it unable to meet margin calls and loan repayments. [1][2]
Collapse
A court in the British Virgin Islands ordered 3AC into liquidation in mid-2022. Liquidators (Teneo) later said they were pursuing claims of roughly $3.5 billion against the founders, and creditors filed billions in claims. The fund's defaults contributed to the failures of several crypto lenders. [1][2]
Regulatory action
In June 2022 the Monetary Authority of Singapore (MAS) reprimanded 3AC for providing false information and exceeding assets-under-management thresholds. In September 2023, MAS issued nine-year prohibition orders against Zhu and Davies. Zhu was briefly detained in Singapore in 2023 for failing to cooperate with liquidators. [3]
Bracketed numbers refer to the numbered sources listed below.
People & entities involved
- Su ZhuCo-founderIndividualsCo-founder of the Singapore crypto hedge fund Three Arrows Capital (3AC), which collapsed in 2022 owing creditors ~$3.5B. Singapore's MAS banned him for nine years; he was jailed four months in 2023 for failing to cooperate with liquidators and arrested at Changi Airport.
- Kyle DaviesCo-founderIndividualsCo-founder of Three Arrows Capital (3AC), the crypto hedge fund whose 2022 collapse left ~$3.5B in creditor claims. Singapore's MAS banned him for nine years and a court sentenced him to four months for failing to cooperate with liquidators; his whereabouts have been reported as unknown.
Sources (3)
- Crypto hedge fund Three Arrows Capital files for bankruptcy — Reuters
- Three Arrows Capital (overview) — Wikipedia
- MAS Issues Prohibition Orders Against Mr Zhu Su and Mr Kyle Davies — Monetary Authority of Singapore
See also
- Loci (LOCIcoin)TokensA 2017–2018 ICO for 'LOCIcoin' tied to the InnVenn IP-search platform. The SEC charged Loci and CEO John Wise with fraud for raising $7.6M on false claims about revenue, headcount, and user base; Wise also misused investor funds. Settled with a $7.6M penalty and an officer/director bar.
- Blockchain Terminal (BCT)TokensA 2017–2018 ICO (BCT tokens, ~$30M) for a 'Blockchain Terminal' — a Bloomberg-style crypto trading terminal. The SEC and DOJ said convicted ex-hedge-funder Boaz Manor secretly ran it under a fake identity ('Shaun MacDonald'), using associate Edith Pardo as a front, and lied about the product's adoption.
- Crowd Machine (CMCT)Tokens
This page was last updated on Jun 8, 2026. View revision history.