Founded by Su Zhu and Kyle Davies, 3AC managed $10B at peak. Excessive leverage, over-concentration in Grayscale Bitcoin Trust and LUNA, and deep lending relationships with every major crypto lender meant its failure triggered cascading defaults at Celsius, BlockFi, Voyager, and Genesis. Su Zhu was arrested in Singapore in 2023. The collapse ended the era of unquestioned credit in crypto.
attack·June 27, 2022
Three Arrows Capital Bankruptcy
Largest crypto hedge fund 3AC defaults on $3.5B in loans after Terra collapse exposure.