Su Zhu (businessman)

Su Zhu
BornApril 1987 (age 37)
China
CitizenshipSingaporean
EducationColumbia University (BA)
OccupationEntrepreneur
Known forCo-founder of Three Arrows Capital

Su Zhu (born April 1987)[1] is a Singaporean entrepreneur.[2] Alongside his longtime friend and business partner Kyle Davies, he is a founder of the now-defunct cryptocurrency hedge fund Three Arrows Capital[3] and a founder of Open Exchange (OPNX), a cryptocurrency exchange.[4]

Early life and education

Zhu was born in China and moved to the United States at the age of 6.[1] He attended high school at Phillips Academy in Andover, Massachusetts, graduating in 2006,[5] and graduated summa cum laude from Columbia University with a bachelor's degree in mathematics.[6]

Career

Zhu moved to Tokyo to trade derivatives at Credit Suisse before working as a trader at Flow Traders, a trading shop in Singapore, in 2009. In 2011, he briefly worked as a trader at Deutsche Bank in Hong Kong.

Three Arrows Capital

Main article: Three Arrows Capital

In 2012 Zhu and Davies founded Three Arrows Capital (3AC) in San Francisco. The two raised approximately $1 million in seed capital by borrowing money from their parents.[6] According to Davies in an interview on the podcast UpOnly, 3AC had doubled their money within the first two months.[6]

In 2013 Zhu and Davies re-registered the hedge fund in Singapore to avoid capital gains tax.[6]

According to New York Magazine, in its early stage, the hedge fund focused on "arbitraging emerging-market foreign-exchange derivatives."[6] This continued until banks cut off 3AC from that market in 2017, which initiated the fund's shift to cryptocurrencies.[6]

At its peak in March 2022, 3AC managed an estimated $10 billion in cryptocurrency assets.[7]

As a result of popularity among cryptocurrency-related topics, Zhu amassed over 500,000 followers on Twitter (now X) shortly before the fund failed.[5]

Liquidation

On 16 June 2022 The Financial Times reported that 3AC had failed to meet its margin calls.[8] Six days later, The Wall Street Journal reported that the 3AC had failed to repay a $665 million Bitcoin and USD Coin loan to Voyager Digital, another cryptocurrency hedge fund.[9][10] The same day, a court in the British Virgin Islands ordered the liquidation of 3AC, overseen by Teneo.[11]

On 2 July 2022, 3AC filed for Chapter 15 bankruptcy to protect its US assets from creditors.[12] The Monetary Authority of Singapore banned Zhu and Davies from participation in the financial sector for nine years.[13]

In an interview with Bloomberg held at an "undisclosed location" in July 2022, Zhu and Davies stated that they plan to move to the United Arab Emirates,[14] a country that does not have extradition treaties with either Singapore or the United States.[15][better source needed]

In June 2023 3AC liquidators said they were seeking to recover $1.3 billion from Davies and Zhu.[16]

According to The New York Times, during the liquidation process, Zhu and Davies were in Bali, where Zhu attempted surfing and Davies dabbled in painting.[5] Zhu and his family had relocated to Singapore, where they lived in a "good-class bungalow" with a "permaculture farm — an elaborate system of lakes and gardens meant to replicate self-sustaining ecosystems in nature. It’s home to ducks, chickens and numerous types of dragonflies."[1]

OPNX

In late 2022 Zhu and Davies started a second venture called Open Exchange (OPNX) based in Hong Kong, which began offering its own cryptocurrency in 2023.[17]

OX.FUN Exchange

In early 2024, Zhu and Davies joined as advisors for the OX.FUN exchange, a platform that aims to merge features of centralized and decentralized exchanges.[18]

Three Arrowz Capitel ($3AC) Token

The founders also been connected to a token project called Three Arrowz Capitel ($3AC), launched in late 2024. The token, structured as a "memecoin," was marketed on various social media platforms and designed with a 1% transaction tax to provide liquidity and incentives for token holders. However, the token’s launch was met with criticism due to its high concentration of insider-held supply and limited liquidity on decentralized exchanges, leading to significant price volatility.[13]

Arrest and imprisonment

In late September 2023 Zhu was arrested at Changi Airport in Singapore,[19] while trying to leave the country.[20] Zhu was arrested pursuant to committal orders which sentenced him to four months in prison for failing to cooperate with the liquidators.[5] Zhu was ultimately imprisoned for three months, and claimed it was a "really enjoyable experience overall" in a video published on X.[21]

References

  1. ^ a b c Ossinger, Joanna (7 April 2022). "Three Arrows Capital's Su Zhu Wants A New 'Freedom-Centric System'". Bloomberg News. Retrieved 27 February 2024.
  2. ^ "#trending: Co-founder of crypto hedge fund Three Arrows Capital says life in S'pore prison was 'enjoyable', 'good' for everyone to experience once". TODAY. Retrieved 23 October 2024.
  3. ^ Lu, Yiwen (23 September 2023). "A Founder of the Crypto Hedge Fund Three Arrows Capital Is Arrested". The New York Times. Retrieved 27 February 2024.
  4. ^ Ashworth, Louis (16 January 2023). "Three Arrows has returned to save crypto. Here's its pitch deck". Financial Times. Retrieved 27 February 2024.
  5. ^ a b c d Yaffe-Bellany, David (9 June 2023). "Their Crypto Company Collapsed. They Went to Bali". The New York Times. Retrieved 27 February 2024.
  6. ^ a b c d e f Wieczner, Jen (15 August 2022). "The Crypto Geniuses Who Vaporized a Trillion Dollars". New York Magazine. Retrieved 27 February 2024.
  7. ^ Sigalos, MacKenzie (29 September 2023). "Fugitive founder of crypto hedge fund that lost $10 billion arrested in Singapore while attempting to flee". CNBC. Retrieved 27 February 2024.
  8. ^ "Crypto hedge fund Three Arrows fails to meet lender margin calls". Financial Times. 16 June 2022. Retrieved 16 June 2022.(subscription required)
  9. ^ Huang, Vicky Ge (22 June 2022). "Crypto Broker Voyager Digital Says Three Arrows Capital Hasn't Repaid $666 Million in Loans". The Wall Street Journal. Retrieved 23 June 2022.
  10. ^ "Crypto hedge fund Three Arrows Capital in default on $665 million loan". The Washington Post. Retrieved 28 June 2022.
  11. ^ Knauth, Dietrich (11 July 2022). "Three Arrows liquidators asks U.S. court to force crypto founders to cooperate". Reuters. Retrieved 18 July 2022.
  12. ^ Roth, Emma (2 July 2022). "Crypto hedge fund Three Arrows files for bankruptcy". The Verge. Retrieved 27 February 2024.
  13. ^ a b Wieczner, Jen (22 February 2024). "'They Are Very Comfortable With Lying'". New York Magazine. Retrieved 27 February 2024.
  14. ^ Ossinger, Joanna; Shen, Muyao; Yang, Yueqi (22 July 2022). "Three Arrows Founders Break Silence Over Collapse of Crypto Hedge Fund". Bloomberg News. Archived from the original on 31 October 2022. Retrieved 27 February 2024.
  15. ^ Elhais, Hassan (3 January 2023). "How Does The Extradition Process Work For Criminal Matters? – Crime – United Arab Emirates". Mondaq. Retrieved 27 February 2024.
  16. ^ "Three Arrows Liquidators Seek $1.3 Billion From Fund's Founders". Bloomberg News. 27 June 2023. Retrieved 29 June 2023.(subscription required)
  17. ^ Yu, Elaine; Soon, Weilun; Osipovich, Alexander (19 May 2023). "A Crypto Hedge Fund Imploded. The Comeback Isn't Going So Well". The Wall Street Journal. ISSN 0099-9660. Retrieved 15 June 2023.
  18. ^ Wieczner, Jen (22 February 2024). "'They Are Very Comfortable With Lying'". Intelligencer. Retrieved 3 November 2024.
  19. ^ Melinek, Jacquelyn (29 September 2023). "Three Arrows Capital co-founder Zhu arrested in Singapore airport, sentenced four months in prison". TechCrunch. Retrieved 27 February 2024.
  20. ^ Wieczner, Jen (29 September 2023). "Crypto Fugitive Su Zhu Has Been Arrested". New York Magazine. Retrieved 30 September 2023.
  21. ^ Loh, Matthew (26 January 2024). "Crypto fund creator Su Zhu said his 3 months in a Singaporean prison were 'really enjoyable' because he finally didn't have internet, caffeine, or alcohol". Business Insider. Retrieved 27 February 2024.