Su Zhu is a co-founder of the cryptocurrency hedge fund Three Arrows Capital (3AC), which experienced a high-profile collapse in 2022. He is known for his involvement in the crypto market and subsequent legal and financial challenges following 3AC's insolvency. ^[3]

Early Life & Education

Su Zhu was born in China and moved to the United States at the age of 6. He graduated from Phillips Academy High School, Andover, Massachusetts, in 2006. He later attended Columbia University, where he earned a Bachelor's degree in Mathematics in 2010, graduating summa cum laude. ^{[2] [3]}

Career

Zhu began his career as a Derivatives Trader at Deutsche Bank in Hong Kong in 2011. ^[2]

Three Arrows Capital (3AC)

• Founding and Growth: In 2012, Zhu co-founded Three Arrows Capital (3AC) with Kyle Davies in San Francisco. The firm initially focused on arbitraging emerging-market foreign-exchange derivatives but shifted its focus to cryptocurrency trading around 2017. 3AC grew significantly, reportedly managing approximately $10 billion in cryptocurrency assets at its peak in March 2022. ^[2]
• Investment Strategy: 3AC employed a strategy that involved taking massive loans from various crypto lenders and reinvesting them, creating a complex web of debt. Zhu promoted a "SuperCycle" thesis, expressing a consistently bullish outlook on the crypto market. At one point, 3AC held a significant stake in the Grayscale Bitcoin Trust. ^[2]
• Collapse: In June 2022, a sharp decline in the cryptocurrency market led to 3AC failing to meet margin calls. The firm was unable to repay a $665 million loan to Voyager Digital. A court in the British Virgin Islands ordered 3AC's liquidation, and the firm subsequently filed for Chapter 15 bankruptcy in the U.S. to protect its assets. Creditors claimed 3AC owed up to $3.5 billion, with liquidators seeking to recover $1.3 billion from Zhu and Davies. ^{[1] [2]}

Post-Collapse Activities & Legal Issues

• Regulatory Actions: In September 2023, the Monetary Authority of Singapore (MAS) issued prohibition orders against Zhu and Davies, banning them for nine years from managing any regulated capital market services company in Singapore, acting as directors or substantial shareholders of such firms, or performing any regulated activity under the Securities and Futures Act 2001. ^[2]
• Arrest and Imprisonment: Zhu was arrested in September 2023 at Singapore's Changi Airport for contempt of court due to his failure to cooperate with the liquidators overseeing 3AC's bankruptcy. He was sentenced to four months in prison. He was later allowed to serve part of his sentence under house arrest and was released early in late November 2023 for good behavior. ^{[1] [2]}
• Liquidators' Claims and Asset Freeze: Liquidators filed a nearly $1.1 billion claim against Zhu and Davies for trading after 3AC was insolvent. A court also ordered that their assets, worldwide, be frozen, along with those of Davies's wife. ^[1]

Post-Prison Ventures

Following his release, Zhu became involved in new crypto ventures. In early 2023, he and Davies were involved with OPNX, an exchange intended to trade bankruptcy claims of collapsed crypto companies. OPNX shut down in February 2024. ^{[1] [2]}

They subsequently became involved with a new exchange called OX.Fun, which focuses on trading crypto tokens, including its own tokens like OX and Milk. Zhu and Davies have described themselves as "advisers" to OX.Fun. ^[1]

Reflections on Prison

In a podcast clip after his release, Zhu described his time in prison as a "really enjoyable experience overall," stating it helped clear his mind and sharpen his senses. He also mentioned reading religious texts and feeling a "kinship with your ancestors." ^{[1] [2]}