Su Zhu (businessperson)
Su Zhu | |
|---|---|
| Born | April 1987 (age 37) China |
| Education | Columbia University (BA) |
| Occupation | Entrepreneur |
| Known for | Co-founder of Three Arrows Capital |
Su Zhu (born April 1987)[1] is a Singaporean entrepreneur. Alongside his longtime friend and business partner Kyle Davies, he is a founder of the now-defunct cryptocurrency hedge fund Three Arrows Capital[2] and a founder of Open Exchange (OPNX), a cryptocurrency exchange.[3]
Early life and education[edit]
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,[4] and graduated summa cum laude from Columbia University with a bachelor's degree in mathematics.[5]
Career[edit]
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[edit]
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.[5] According to Davies in an interview on the podcast UpOnly, 3AC had doubled their money within the first two months.[5]
In 2013 Zhu and Davies re-registered the hedge fund in Singapore to avoid capital gains tax.[5]
According to New York Magazine, in its early stage, the hedge fund focused on "arbitraging emerging-market foreign-exchange derivatives."[5] This continued until banks cut off 3AC from that market in 2017, which initiated the fund's shift to cryptocurrencies.[5]
At its peak in March 2022, 3AC managed an estimated $10 billion in cryptocurrency assets.[6]
As a result of popularity among cryptocurrency-related topics, Zhu amassed over 500,000 followers on Twitter (now X) shortly before the fund failed.[4]
Liquidation[edit]
On June 16, 2022 The Financial Times reported that 3AC had failed to meet its margin calls.[7] 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.[8][9] The same day, a court in the British Virgin Islands ordered the liquidation of 3AC, overseen by Teneo.[10]
On July 2, 2022, 3AC filed for Chapter 15 bankruptcy to protect its US assets from creditors.[11] The Monetary Authority of Singapore banned Zhu and Davies from participation in the financial sector for nine years.[12]
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,[13] a country that does not have extradition treaties with either Singapore or the United States.[14][better source needed]
In June 2023 3AC liquidators said they were seeking to recover $1.3 billion from Davies and Zhu.[15]
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.[4] 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[edit]
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.[16]
Arrest and imprisonment[edit]
In late September 2023 Zhu was arrested at Changi Airport in Singapore,[17] while trying to leave the country.[18] Zhu was arrested pursuant to committal orders which sentenced him to four months in prison for failing to cooperate with the liquidators.[4] Zhu was ultimately imprisoned for three months, and claimed it was a "really enjoyable experience overall" in a video published on X.[19]
References[edit]
- ^ a b c Ossinger, Joanna (2022-04-07). "Three Arrows Capital's Su Zhu Wants A New 'Freedom-Centric System'". Bloomberg News. Retrieved 2024-02-27.
- ^ Lu, Yiwen (2023-09-23). "A Founder of the Crypto Hedge Fund Three Arrows Capital Is Arrested". The New York Times. Retrieved 2024-02-27.
- ^ Ashworth, Louis (2023-01-16). "Three Arrows has returned to save crypto. Here's its pitch deck". Financial Times. Retrieved 2024-02-27.
- ^ a b c d Yaffe-Bellany, David (2023-06-09). "Their Crypto Company Collapsed. They Went to Bali". The New York Times. Retrieved 2024-02-27.
- ^ a b c d e f Wieczner, Jen (2022-08-15). "The Crypto Geniuses Who Vaporized a Trillion Dollars". New York Magazine. Retrieved 2024-02-27.
- ^ Sigalos, MacKenzie (2023-09-29). "Fugitive founder of crypto hedge fund that lost $10 billion arrested in Singapore while attempting to flee". CNBC. Retrieved 2024-02-27.
- ^ "Crypto hedge fund Three Arrows fails to meet lender margin calls". Financial Times. 16 June 2022. Retrieved 16 June 2022.(subscription required)
- ^ 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.
- ^ "Crypto hedge fund Three Arrows Capital in default on $665 million loan". The Washington Post. Retrieved 28 June 2022.
- ^ Knauth, Dietrich (2022-07-11). "Three Arrows liquidators asks U.S. court to force crypto founders to cooperate". Reuters. Retrieved 2022-07-18.
- ^ Roth, Emma (2022-07-02). "Crypto hedge fund Three Arrows files for bankruptcy". The Verge. Retrieved 2024-02-27.
- ^ Wieczner, Jen (2024-02-22). "'They Are Very Comfortable With Lying'". New York Magazine. Retrieved 2024-02-27.
- ^ 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 Oct 2022. Retrieved 2024-02-27.
- ^ Elhais, Hassan (2023-01-03). "How Does The Extradition Process Work For Criminal Matters? – Crime – United Arab Emirates". Mondaq. Retrieved 2024-02-27.
- ^ "Three Arrows Liquidators Seek $1.3 Billion From Fund's Founders". Bloomberg News. 27 June 2023. Retrieved 29 June 2023.(subscription required)
- ^ Yu, Elaine; Soon, Weilun; Osipovich, Alexander (2023-05-19). "A Crypto Hedge Fund Imploded. The Comeback Isn't Going So Well". The Wall Street Journal. ISSN 0099-9660. Retrieved 2023-06-15.
- ^ Melinek, Jacquelyn (2023-09-29). "Three Arrows Capital co-founder Zhu arrested in Singapore airport, sentenced four months in prison". TechCrunch. Retrieved 2024-02-27.
- ^ Wieczner, Jen (2023-09-29). "Crypto Fugitive Su Zhu Has Been Arrested". New York Magazine. Retrieved 2023-09-30.
- ^ Loh, Matthew (2024-01-26). "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 2024-02-27.