Three Arrows Capital

Co-founders Su Zhu and Kyle Davies jointly controlled all investment decisions. Both were former Credit Suisse traders. They operated with no formal investment committee disclosed to creditors or investors. The liquidator Teneo later stated in BVI court filings that all material decisions flowed through Zhu and Davies personally.

The proximate cause was the implosion of the Terra-Luna ecosystem in May 2022, where Three Arrows had placed a $200 million investment in Luna Foundation Guard and deposited significant assets in Anchor Protocol. These losses triggered margin calls on leveraged positions across multiple lenders. The fund defaulted on a $665 million loan to Voyager Digital in June 2022. A BVI court ordered liquidation on June 27, 2022, appointing Teneo as liquidator (per Teneo, June 2022).

No independently audited AUM figure exists. Public estimates range from $10 billion to $18 billion at the peak in early 2022, based on reported positions, borrowing volumes, and subsequent creditor claims (Altss estimate). The liquidator's initial filings did not confirm a specific number, reflecting the complexity of tracing assets across multiple jurisdictions and DeFi protocols.

Three Arrows was a British Virgin Islands-incorporated fund with operations in Singapore. It operated as an exempted fund manager in Singapore until that status was revoked. The entity had no US SEC registration. Its regulatory status was a key issue in the Monetary Authority of Singapore's September 2023 prohibition order, which cited exceeding AUM thresholds without required filings (per Monetary Authority of Singapore, September 2023).

Confirmed large positions included the Grayscale Bitcoin Trust, staked Ethereum through Lido Finance, the Luna Foundation Guard stake, and holdings in Axie Infinity-related tokens. The fund also had significant deposits in Anchor Protocol and borrowing relationships with Voyager, Celsius, and BlockFi. These positions were concentrated and highly correlated.

Su Zhu was arrested in Singapore in September 2023 under the prohibition order and sentenced to four months in prison (per Bloomberg, September 2023). Kyle Davies' location has been reported as varying; he has not publicly confirmed his whereabouts. Zhu was released from custody in late 2023. Both remain subject to the BVI liquidation proceeding and MAS prohibition orders.

Yes. The BVI liquidation by Teneo continues, pursuing asset recovery globally. In June 2023, Teneo also filed claims in US bankruptcy court during the Genesis Global Capital proceeding, asserting a $1.3 billion claim against the Genesis entities (per Teneo filings, June 2023). Singapore's prohibition orders remain in effect through 2032.