{"investigation":{"slug":"su-zhu","entity_name":"Su Zhu","trust_score":3,"severity_base":null,"score_modifier":0,"confidence":0.93,"status":"published","content_type":"investigation","summary":"Su Zhu is the co-founder and former CEO of Three Arrows Capital (3AC), a Singapore-based cryptocurrency hedge fund that collapsed in June 2022 with approximately $3.5 billion owed to 27 creditors, triggering cascading bankruptcies at Voyager Digital, Celsius Network, and Genesis Global Trading. Zhu was convicted of contempt of court for failing to cooperate with liquidators, arrested at Singapore's Changi Airport in September 2023 while allegedly attempting to flee, and sentenced to four months in prison. Following his release he became involved in additional ventures including OPNX, a bankruptcy-claims trading exchange that was fined $2.7 million by Dubai's Virtual Assets Regulatory Authority and subsequently shut down in February 2024.","sections":[{"content":"Su Zhu was born in April 1987 in China and holds Singaporean citizenship. He attended Phillips Academy (Andover, Massachusetts) and graduated summa cum laude from Columbia University with a BA in Mathematics. Zhu began his career in derivatives trading, working at Credit Suisse in Tokyo, Flow Traders in Singapore (circa 2009), and Deutsche Bank in Hong Kong (circa 2011). In 2012, he co-founded Three Arrows Capital in San Francisco with former high school classmate Kyle Davies, using approximately $1 million borrowed from their parents. The fund re-registered in Singapore in 2013 for tax purposes. Before pivoting to cryptocurrencies after 2017, 3AC focused on arbitraging emerging-market foreign-exchange derivatives. At its peak in March 2022, the fund reportedly managed approximately $10 billion in assets under management.","heading":"Background and Career","sources":[{"url":"https://en.wikipedia.org/wiki/Su_Zhu_(businessman)","name":"en.wikipedia.org","type":"other","credibility":3},{"url":"https://www.efinancialcareers.com/news/2021/05/ex-traders-crypto-billionaires","name":"efinancialcareers.com","type":"other","credibility":3},{"url":"https://fortune.com/2022/07/22/three-arrows-capital-disgraced-founders-emerge-5-weeks-hiding-tell-story-crypto-fund-collapse/","name":"fortune.com","type":"other","credibility":3}],"severity":"medium"},{"content":"Three Arrows Capital's collapse in mid-2022 stemmed from a combination of heavily leveraged positions and catastrophic losses on two key trades. The fund held a position of approximately $200 million in LUNA tokens as part of a broader $1 billion Luna Foundation Guard raise in February 2022; when Terra's stablecoin ecosystem imploded in May 2022 the entire position was effectively wiped out. Additionally, 3AC had accumulated nearly 39 million units of Grayscale Bitcoin Trust (GBTC) — at one point the largest single GBTC holder — exploiting a premium arbitrage strategy that collapsed when GBTC shifted to a deep discount. The fund failed to meet margin calls from multiple lenders beginning June 16, 2022. On June 22, 3AC defaulted on a $665 million loan from Voyager Digital. A British Virgin Islands court ordered the fund into liquidation on June 27, 2022, and 3AC filed for Chapter 15 bankruptcy protection in the United States on July 2, 2022. According to court filings, the fund owed approximately $3.5 billion to 27 creditors, with Genesis Global Trading alone exposed to $2.3 billion. The fund's total losses over 2021 and 2022 are estimated at over $4.2 billion, described by some analysts as among the largest hedge fund trading losses in history. Founders Zhu and Davies went into what creditors characterized as 'prolonged radio silence,' ignoring creditor outreach and keeping their locations hidden.","heading":"Three Arrows Capital Collapse (2022)","sources":[{"url":"https://www.cnbc.com/2022/06/29/crypto-hedge-fund-three-arrows-capital-plunges-into-liquidation.html","name":"cnbc.com","type":"other","credibility":3},{"url":"https://www.coindesk.com/business/2022/06/29/three-arrows-capital-liquidation-ordered-in-british-virgin-isles-report","name":"coindesk.com","type":"other","credibility":3},{"url":"https://fortune.com/2022/07/19/3ac-bankruptcy-filing-founders-missing-yacht-debt-creditors-owed/","name":"fortune.com","type":"other","credibility":3},{"url":"https://www.coindesk.com/business/2022/07/22/three-arrows-capital-founders-says-terra-gbtc-trades-led-to-fund-blowup-report","name":"coindesk.com","type":"other","credibility":3},{"url":"https://www.cnbc.com/2022/07/11/how-the-fall-of-three-arrows-or-3ac-dragged-down-crypto-investors.html","name":"cnbc.com","type":"other","credibility":3}],"severity":"medium"},{"content":"The collapse of Three Arrows Capital is widely regarded as a primary catalyst for the broader 2022 crypto contagion. Voyager Digital, which had lent 3AC approximately $650–$670 million, filed for Chapter 11 bankruptcy protection shortly after 3AC defaulted. Genesis Global Trading, which had extended $2.3 billion in loans to 3AC, was severely impaired and later filed for bankruptcy in January 2023. Celsius Network, which had significant exposure to both 3AC and the Terra ecosystem, suspended withdrawals in June 2022 and filed for bankruptcy in July 2022. BlockFi, which had lent Bitcoin to 3AC, was also severely damaged and ultimately filed for bankruptcy in November 2022. CoinList, Galaxy Digital, SBI Crypto, and Moonbeam were among other named creditors. The cascade of failures prompted calls for greater regulatory oversight of crypto lending and hedge fund leverage.","heading":"Systemic Contagion","sources":[{"url":"https://en.wikipedia.org/wiki/Three_Arrows_Capital","name":"en.wikipedia.org","type":"other","credibility":3},{"url":"https://www.cnbc.com/2022/07/11/how-the-fall-of-three-arrows-or-3ac-dragged-down-crypto-investors.html","name":"cnbc.com","type":"other","credibility":3},{"url":"https://finance.yahoo.com/news/three-arrows-capital-liquidators-seek-153111448.html","name":"finance.yahoo.com","type":"other","credibility":3}],"severity":"medium"},{"content":"On September 13, 2023, Singapore's Monetary Authority of Singapore (MAS) issued nine-year prohibition orders against Su Zhu and Kyle Davies under the Securities and Futures Act 2001 (SFA) and related regulations. The orders prohibit Zhu and Davies from performing any regulated activity and from taking part in the management of, acting as director of, or becoming a substantial shareholder of any capital markets services firm regulated under the SFA. MAS's investigation found that between August 2020 and January 2022, as directors of Three Arrows Capital Pte Ltd, Zhu and Davies failed to notify MAS of the employment of a portfolio manager, provided false information to MAS, and failed to maintain appropriate risk management protocols. MAS stated the two founders bore primary responsibility for ensuring regulatory compliance and had failed to discharge their duties.","heading":"Regulatory Actions — Monetary Authority of Singapore","sources":[{"url":"https://www.coindesk.com/policy/2023/09/14/three-arrows-founders-hit-with-9-year-trading-ban-in-singapore","name":"coindesk.com","type":"other","credibility":3},{"url":"https://cointelegraph.com/news/singapore-central-bank-bans-three-arrows-capital-founders","name":"cointelegraph.com","type":"other","credibility":3},{"url":"https://www.bloomberg.com/news/articles/2023-09-14/singapore-bans-zhu-davies-over-crypto-hedge-fund-three-arrows","name":"bloomberg.com","type":"other","credibility":3}],"severity":"medium"},{"content":"Following the collapse of 3AC, Zhu's whereabouts were unknown for an extended period. Liquidators from Teneo Restructuring repeatedly sought his cooperation with the winding-up process. After Zhu failed to comply with court orders, Teneo obtained a committal order sentencing him to four months in prison for contempt of court. On September 29, 2023, Teneo tipped off Singapore police that Zhu was heading to Changi Airport. Zhu was arrested at the airport while allegedly attempting to leave Singapore. Singapore police confirmed the detention of a 36-year-old man consistent with Zhu's profile. He was subsequently imprisoned. In December 2023, Zhu appeared in a Singapore court for a two-day hearing and was questioned by Teneo lawyers about the fund's collapse and the whereabouts of assets — marking his first substantive engagement with liquidators. Also in December 2023, a British Virgin Islands court froze more than $1 billion in assets belonging to Zhu, Davies, and Davies' wife, Kelly Chen. Zhu served approximately three months before being released early for good behavior, emerging in late 2023. He later described his prison experience as 'really enjoyable' for providing a break from 'internet, caffeine, or alcohol.'","heading":"Arrest, Imprisonment, and Court Proceedings","sources":[{"url":"https://www.coindesk.com/policy/2023/09/29/bankrupt-crypto-hedge-fund-3acs-su-zhu-apprehended-in-singapore-liquidator-says","name":"coindesk.com","type":"other","credibility":3},{"url":"https://www.cnbc.com/2023/09/29/fugitive-founder-of-3ac-crypto-hedge-fund-arrested-in-singapore.html","name":"cnbc.com","type":"other","credibility":3},{"url":"https://techcrunch.com/2023/09/29/three-arrows-capital-co-founder-zhu-arrested-in-singapore-airport-sentenced-four-months-in-prison/","name":"techcrunch.com","type":"other","credibility":3},{"url":"https://www.bloomberg.com/news/articles/2023-10-09/singapore-tip-off-led-to-arrest-of-three-arrows-co-founder-zhu","name":"bloomberg.com","type":"other","credibility":3},{"url":"https://www.bloomberg.com/news/articles/2023-12-13/liquidators-question-three-arrows-su-zhu-in-singapore-court-to-find-assets","name":"bloomberg.com","type":"other","credibility":3},{"url":"https://www.coindesk.com/policy/2023/12/21/court-freezes-1-billion-of-assets-of-three-arrows-capital-founders","name":"coindesk.com","type":"other","credibility":3}],"severity":"medium"},{"content":"While 3AC's liquidation was ongoing, Zhu and Davies launched OPNX (Open Exchange) in April 2023 — a Hong Kong-based hybrid platform allowing users to trade cryptocurrency bankruptcy claims and use them as collateral. The venture was widely criticized given both founders remained subjects of active liquidation proceedings. OPNX's launch was troubled from the outset: fewer than $2 in trades were executed in its first 24 hours of operation, and peak trading volume reached only approximately $624,000 according to CoinGecko data. In May 2023, Dubai's Virtual Assets Regulatory Authority (VARA) formally reprimanded OPNX and its founders for soliciting customers and collecting personal data without proper authorization beginning as early as February 2023. In August 2023, VARA issued a fine of AED 10,000,000 (approximately $2.7 million) against OPNX for violating advertising, promotional, and marketing regulations. Individual fines of AED 200,000 were imposed against Zhu, Davies, co-founder Mark Lamb, and CEO Leslie Lamb. OPNX announced the closure of all operations effective February 14, 2024, with Davies stating that the recovery of FTX bankruptcy claims had eliminated the market's primary use case.","heading":"OPNX — Bankruptcy Claims Exchange","sources":[{"url":"https://www.coindesk.com/business/2023/04/05/bankruptcy-exchange-opnx-stumbles-out-of-the-gate-flex-token-slumps-28","name":"coindesk.com","type":"other","credibility":3},{"url":"https://www.coindesk.com/policy/2023/08/16/3ac-founders-opnx-fined-nearly-28m-by-dubai-crypto-regulator","name":"coindesk.com","type":"other","credibility":3},{"url":"https://www.arabianbusiness.com/industries/banking-finance/dubai-slaps-2-7mn-fine-on-three-arrows-capitals-crypto-exchange-opnx","name":"arabianbusiness.com","type":"other","credibility":3},{"url":"https://www.coindesk.com/markets/2024/02/02/opnx-founder-su-zhu-says-shutdown-comes-because-ftx-estate-claims-reached-recovery","name":"coindesk.com","type":"other","credibility":3},{"url":"https://decrypt.co/215346/opnx-the-crypto-exchange-from-bankrupt-three-arrows-capital-is-shutting-down","name":"decrypt.co","type":"other","credibility":3}],"severity":"medium"},{"content":"Following his release from prison, Zhu became associated with OX.FUN, a gamified meme coin perpetual futures exchange that emerged as a successor to OPNX in early 2024. OX.FUN incorporated a feature named 'Prison' — a staking mechanism described by observers as a reference to Zhu's imprisonment. The platform subsequently became embroiled in significant controversy: multiple users alleged their funds were frozen without justification, and reports emerged alleging that the exchange attempted to coerce at least one user into providing free promotional services under threat of continued asset freezes. OX.FUN disputed insolvency claims made by JefeDAO, a counterparty that alleged market manipulation. The 3AC liquidators also filed a separate $1.3 billion lawsuit against Terraform Labs in August 2024 over the LUNA/UST collapse that contributed to 3AC's failure. Kyle Davies, Zhu's co-founder, remained at large as of the time of reporting, with his whereabouts unknown.","heading":"Post-Release Ventures and Ongoing Controversies","sources":[{"url":"https://www.theblock.co/post/342889/su-zhu-backed-ox-fun-dismisses-insolvency-claims-amid-jefedao-feud","name":"theblock.co","type":"other","credibility":3},{"url":"https://news.bitcoinprotocol.org/crypto-exchange-ox-fun-attempts-to-extort-user-for-1-million-faces-collapse-and-controversy/","name":"news.bitcoinprotocol.org","type":"other","credibility":3},{"url":"https://www.bloomberg.com/news/articles/2024-08-12/three-arrows-liquidators-seek-1-3-billion-over-2022-luna-crash","name":"bloomberg.com","type":"other","credibility":3},{"url":"https://en.wikipedia.org/wiki/Su_Zhu_(businessman)","name":"en.wikipedia.org","type":"other","credibility":3}],"severity":"medium"}],"timeline":[{"date":"2012","event":"Su Zhu and Kyle Davies co-found Three Arrows Capital in San Francisco with approximately $1 million borrowed from their parents.","source":"","date_original":"2012-01-01"},{"date":"2013","event":"Three Arrows Capital re-registers in Singapore for tax purposes.","source":"","date_original":"2013-01-01"},{"date":"2022-02","event":"3AC invests approximately $200 million in LUNA as part of the Luna Foundation Guard's $1 billion capital raise.","source":"","date_original":"2022-02-01"},{"date":"2022-03","event":"Three Arrows Capital reaches peak reported assets under management of approximately $10 billion.","source":"","date_original":"2022-03-01"},{"date":"2022-05-12","event":"Terra/LUNA ecosystem collapses; LUNA price falls from approximately $80 to near zero, causing catastrophic losses for 3AC.","source":""},{"date":"2022-06-16","event":"3AC fails to meet margin calls from multiple lenders.","source":""},{"date":"2022-06-22","event":"3AC defaults on a $665 million loan from Voyager Digital.","source":""},{"date":"2022-06-27","event":"A British Virgin Islands court orders Three Arrows Capital into liquidation. Teneo Restructuring is appointed as liquidator.","source":""},{"date":"2022-07-02","event":"3AC files for Chapter 15 bankruptcy in the United States to protect US assets from creditors. Court filings reveal $3.5 billion owed to 27 creditors.","source":""},{"date":"2022-07-12","event":"Founders Zhu and Davies are reported missing, having ignored creditor outreach and liquidator contact attempts.","source":""},{"date":"2022-07-22","event":"Zhu and Davies give a media interview from an undisclosed location, describing the fund's collapse as caused by LUNA and GBTC trades.","source":""},{"date":"2023-04","event":"Zhu and Davies launch OPNX, a bankruptcy claims trading exchange, while 3AC liquidation proceedings remain active.","source":"","date_original":"2023-04-01"},{"date":"2023-05","event":"Dubai's VARA formally reprimands OPNX and its founders for soliciting customers without proper authorization.","source":"","date_original":"2023-05-01"},{"date":"2023-08-16","event":"VARA fines OPNX AED 10 million (~$2.7 million) for violating advertising and marketing regulations; individual fines imposed on Zhu and other founders.","source":""},{"date":"2023-09-13","event":"Singapore's MAS issues nine-year prohibition orders against Zhu and Davies barring them from managing or directing any capital markets services firm in Singapore.","source":""},{"date":"2023-09-29","event":"Su Zhu is arrested at Singapore's Changi Airport while allegedly attempting to leave the country, pursuant to a committal order for contempt of court. Sentenced to four months in prison.","source":""},{"date":"2023-12-13","event":"Su Zhu appears in Singapore court for a two-day hearing, facing questioning from Teneo lawyers about the fund's collapse and asset locations.","source":""},{"date":"2023-12-21","event":"A BVI court freezes more than $1 billion in assets belonging to Zhu, Davies, and Davies' wife Kelly Chen.","source":""},{"date":"2024-02-14","event":"OPNX ceases all operations.","source":""},{"date":"2024-02","event":"OX.FUN launches as a successor meme coin perpetual futures exchange, with Su Zhu listed as an advisor/backer.","source":"","date_original":"2024-02-01"},{"date":"2024-08-12","event":"3AC liquidators file a $1.3 billion lawsuit against Terraform Labs over the LUNA/UST collapse that contributed to 3AC's failure.","source":""}],"sources_used":[{"url":"https://en.wikipedia.org/wiki/Su_Zhu_(businessman)","name":"en.wikipedia.org","type":"other","credibility":3},{"url":"https://www.efinancialcareers.com/news/2021/05/ex-traders-crypto-billionaires","name":"efinancialcareers.com","type":"other","credibility":3},{"url":"https://fortune.com/2022/07/22/three-arrows-capital-disgraced-founders-emerge-5-weeks-hiding-tell-story-crypto-fund-collapse/","name":"fortune.com","type":"other","credibility":3},{"url":"https://www.cnbc.com/2022/06/29/crypto-hedge-fund-three-arrows-capital-plunges-into-liquidation.html","name":"cnbc.com","type":"other","credibility":3},{"url":"https://www.coindesk.com/business/2022/06/29/three-arrows-capital-liquidation-ordered-in-british-virgin-isles-report","name":"coindesk.com","type":"other","credibility":3},{"url":"https://fortune.com/2022/07/19/3ac-bankruptcy-filing-founders-missing-yacht-debt-creditors-owed/","name":"fortune.com","type":"other","credibility":3},{"url":"https://www.coindesk.com/business/2022/07/22/three-arrows-capital-founders-says-terra-gbtc-trades-led-to-fund-blowup-report","name":"coindesk.com","type":"other","credibility":3},{"url":"https://www.cnbc.com/2022/07/11/how-the-fall-of-three-arrows-or-3ac-dragged-down-crypto-investors.html","name":"cnbc.com","type":"other","credibility":3},{"url":"https://en.wikipedia.org/wiki/Three_Arrows_Capital","name":"en.wikipedia.org","type":"other","credibility":3},{"url":"https://finance.yahoo.com/news/three-arrows-capital-liquidators-seek-153111448.html","name":"finance.yahoo.com","type":"other","credibility":3},{"url":"https://www.coindesk.com/policy/2023/09/14/three-arrows-founders-hit-with-9-year-trading-ban-in-singapore","name":"coindesk.com","type":"other","credibility":3},{"url":"https://cointelegraph.com/news/singapore-central-bank-bans-three-arrows-capital-founders","name":"cointelegraph.com","type":"other","credibility":3},{"url":"https://www.bloomberg.com/news/articles/2023-09-14/singapore-bans-zhu-davies-over-crypto-hedge-fund-three-arrows","name":"bloomberg.com","type":"other","credibility":3},{"url":"https://www.coindesk.com/policy/2023/09/29/bankrupt-crypto-hedge-fund-3acs-su-zhu-apprehended-in-singapore-liquidator-says","name":"coindesk.com","type":"other","credibility":3},{"url":"https://www.cnbc.com/2023/09/29/fugitive-founder-of-3ac-crypto-hedge-fund-arrested-in-singapore.html","name":"cnbc.com","type":"other","credibility":3},{"url":"https://techcrunch.com/2023/09/29/three-arrows-capital-co-founder-zhu-arrested-in-singapore-airport-sentenced-four-months-in-prison/","name":"techcrunch.com","type":"other","credibility":3},{"url":"https://www.bloomberg.com/news/articles/2023-10-09/singapore-tip-off-led-to-arrest-of-three-arrows-co-founder-zhu","name":"bloomberg.com","type":"other","credibility":3},{"url":"https://www.bloomberg.com/news/articles/2023-12-13/liquidators-question-three-arrows-su-zhu-in-singapore-court-to-find-assets","name":"bloomberg.com","type":"other","credibility":3},{"url":"https://www.coindesk.com/policy/2023/12/21/court-freezes-1-billion-of-assets-of-three-arrows-capital-founders","name":"coindesk.com","type":"other","credibility":3},{"url":"https://www.coindesk.com/business/2023/04/05/bankruptcy-exchange-opnx-stumbles-out-of-the-gate-flex-token-slumps-28","name":"coindesk.com","type":"other","credibility":3},{"url":"https://www.coindesk.com/policy/2023/08/16/3ac-founders-opnx-fined-nearly-28m-by-dubai-crypto-regulator","name":"coindesk.com","type":"other","credibility":3},{"url":"https://www.arabianbusiness.com/industries/banking-finance/dubai-slaps-2-7mn-fine-on-three-arrows-capitals-crypto-exchange-opnx","name":"arabianbusiness.com","type":"other","credibility":3},{"url":"https://www.coindesk.com/markets/2024/02/02/opnx-founder-su-zhu-says-shutdown-comes-because-ftx-estate-claims-reached-recovery","name":"coindesk.com","type":"other","credibility":3},{"url":"https://decrypt.co/215346/opnx-the-crypto-exchange-from-bankrupt-three-arrows-capital-is-shutting-down","name":"decrypt.co","type":"other","credibility":3},{"url":"https://www.theblock.co/post/342889/su-zhu-backed-ox-fun-dismisses-insolvency-claims-amid-jefedao-feud","name":"theblock.co","type":"other","credibility":3},{"url":"https://news.bitcoinprotocol.org/crypto-exchange-ox-fun-attempts-to-extort-user-for-1-million-faces-collapse-and-controversy/","name":"news.bitcoinprotocol.org","type":"other","credibility":3},{"url":"https://www.bloomberg.com/news/articles/2024-08-12/three-arrows-liquidators-seek-1-3-billion-over-2022-luna-crash","name":"bloomberg.com","type":"other","credibility":3}],"source_tags":[],"addresses":[],"reviewed":false,"reviewed_by":null,"model_used":"claude-sonnet-4-6","created_at":"2026-05-30T18:33:27.576839+00:00","updated_at":"2026-08-29T01:34:01.258+00:00"}}