Three Arrows Capital
Three Arrows Capital (3AC) was a Singapore-based cryptocurrency hedge fund started in 2012 by Kyle Davies and Su Zhu. In June 2022 a court in the British Virgin Islands ordered it to liquidate. By then the firm faced about $3.5 billion in creditors’ claims and had suffered massive losses in 2021 and 2022, making its collapse one of the largest hedge-fund-style crypto losses on record.
The founders met in school and began with a strategy that involved arbitraging emerging‑market derivatives. Banks later restricted that business, so 3AC shifted to cryptocurrencies. The fund was once known to manage or hold billions of dollars in crypto assets and backed many projects in the space. At one point it owned a large stake of Grayscale Bitcoin Trust shares and invested hundreds of millions in Luna before it collapsed in 2022.
During 2022, crypto markets fell sharply. Luna’s collapse, a widening gap between Grayscale GBTC prices and spot Bitcoin, and trouble repaying loans contributed to 3AC’s troubles. In June 2022 Voyager Digital, a crypto lender, said 3AC failed to repay a loan, and a few days later Voyager filed a notice of default on a large loan tied to Bitcoin and USD Coin.
The Singapore Monetary Authority (MAS) reprimanded 3AC in June 2022 for breaching asset‑under‑management rules and for providing misleading information and failing to notify changes in ownership or directors. In 2022 there were also investigations by U.S. regulators into whether 3AC misled investors about its balance sheet and registration status.
On June 27, 2022, a BVI court ordered the liquidation of 3AC, with Teneo executives acting as joint liquidators. The firm later filed for Chapter 15 bankruptcy in the United States to protect its assets from creditors. The collapse affected other firms in the crypto space and contributed to wider industry stress, including issues at Genesis/DCG and Voyager’s bankruptcy.
Davies and Zhu did not cooperate well with the liquidation process, and their whereabouts were uncertain for a time. By mid‑2022 they were discussed as planning moves to the United Arab Emirates, which does not have an extradition treaty with Singapore or the U.S.
In 2023 and beyond, liquidators sought to recover about $1.3 billion from Davies and Zhu. Zhu was arrested in Singapore in September 2023 for failing to cooperate with liquidators; Davies’ whereabouts remained unclear. The founders then pursued new crypto ventures, including Open Exchange in Hong Kong and advisory roles with OX.FUN. A later token project, Three Arrowz Capitel ($3AC), appeared as a meme token with heavy insider ownership and liquidity concerns, drawing criticism from some investors.
This page was last edited on 3 February 2026, at 19:57 (CET).